R590-170-5. Maintaining a Trust Account

(1) Funds deposited into a trust account shall be limited to: (a) premiums, which may include commissions; (b) return premiums; (c) fees or taxes paid with premiums; (d) financed premiums; (e) funds held pursuant to a third-party administrator contract; (f) funds deposited with a title insurance agent regarding an escrow settlement or closing; (g) funds necessary to cover trust account bank charges; and (h) interest on the trust account, except as provided under Subsection 31A-23a-406(2)(b). (2) Disbursements from a trust account shall be limited to: (a) premiums paid to insurers; (b) return premiums to policyholders; (c) commission and fee transfers; (d) fees or taxes collected with premiums paid to an insurer or taxing authority; (e) funds paid pursuant to a third-party administrator contract; (f) funds a title insurance agent disburses regarding an escrow settlement or closing; and (g) accrued interest transfers. (3) Personal or business expenses may not be paid from a trust account, even if the trust account has sufficient commissions to cover the personal or business expenses. (4) A commission may not be disbursed from a trust account before the beginning of the policy period for which the premium is collected. (5) A commission attributed to premiums and fees collected shall be disbursed from a trust account on a date no later than the first business day of the calendar quarter after the end of the policy period for which the funds were collected. (6) A premium due to an insurer may not be paid from a trust account unless: (a) the premiums relating to the amount due are being held in the trust account; or (b) a licensee placed the funds in the trust account to finance premiums on the insured's behalf. (7) Premiums financed by a licensee shall be accounted for as a loan and accrue interest at the contracted rate.