3 Colo. Code Regs. § 702-1-2-1-4

Current through Register Vol. 47, No. 22, November 25, 2024

Section 3 CCR 702-1-2-1-4 - Rule

A. No insurance premium or refund received by an insurance producer or agency by reason of the application for, issuance or termination of any particular policy may be credited to any other obligation owed by the insured to such producer, agency or other insurer unless specific written authorization has been obtained from the insured to so credit, or a blanket authorization has been obtained from the insured to handle all policies and obligations from one account.

B. Upon receipt, the insurance producer or agency shall treat all premiums and returned premiums in a fiduciary capacity, including but not limited to the following:

1. Upon receipt the insurance producer or agency must treat all premiums and return premiums as trust funds and segregate them from his own funds;

2. The insurance producer or agency must keep an accurate record of all fiduciary funds;

3. The insurance producer or agency must not treat insurance premiums or returned premiums as a personal or business asset;

4. The insurance producer's or agency's financial statement should not reflect fiduciary funds as an asset or as income to the insurance producer or agency;

5. An insurance producer or agency may not use fiduciary funds as collateral for a personal or business loan; and

6. Any deposit of such premium and returned premium funds into a bank or savings account must be into a separate insurance trust account until actually remitted to the insurer or person entitled thereto. Such deposits will be subject to the uniform fiduciary's law as delineated in § 15-1-101, et seq, C.R.S.

3 CCR 702-1-2-1-4

37 CR 11, June 10, 2014, effective 6/30/2014

37 CR 11, June 10, 2014, effective 7/1/2014

38 CR 09, May 10, 2015, effective 6/1/2015

38 CR 20, October 25, 2015, effective 11/15/2015

40 CR 19, October 10, 2017, effective 11/1/2017

40 CR 21, November 10, 2017, effective 12/1/2017

40 CR 21, November 10, 2017, effective 1/1/2018

41 CR 21, November 10, 2018, effective 12/1/2018

43 CR 21, November 10, 2020, effective 12/1/2020

45 CR 21, November 10, 2022, effective 11/30/2022