R590-170-6. Insurers' Access to a Trust Account

(1) An insurer may access licensee trust funds in a trust relationship when a licensee takes reasonable steps to prevent misappropriation by limiting access to trust funds. (2) An insurer may access funds in a licensee's trust account if: (a)(i) the contract between the insurer and the licensee allows fund transfers into or out of the licensee's trust account; (ii) the contract expressly permits the insurer to withdraw only the amount the licensee authorizes for each transaction; and (iii) the insurer receives the licensee's authorization to withdraw a specific amount from the licensee's trust account before the insurer withdraws the funds; or (b) the licensee provides the insurer electronic funds transfer into or out of a separate trust account set up solely for trust funds deposited for that insurer. (3) An insurer that implements electronic funds transfers from a licensee's trust account accepts the commissioner's right to oversight on all electronic funds transfers between the insurer and the licensee.