Section Ins 2301.08 - Fiduciary Obligation(a) Any money received by a TPA as premium or return premium on or under any policy of insurance or application therefor shall be received by the TPA in its fiduciary capacity.(b) Any TPA who appropriates to its own use, or with intent to appropriate to its own use, takes, secretes, withholds, lends, invests, or otherwise disposes of, or uses or applies any such premium or return premium received by it, contrary to the instructions or without the consent of the insurer for or on account of which the same was received by it, shall be deemed to have violated this part, irrespective of whether the TPA has or claims to have any commission or other interest in such premium or return premium.(c) A TPA shall hold premiums and return premiums as a trustee, and not as the owner of the beneficial title to the funds. A TPA shall treat all premiums and return premiums as trust funds and segregate them from the TPA's own funds.(d) The TPA shall keep an accurate record of all fiduciary funds in accordance with Ins 2301.13. The TPA shall not treat insurance premiums or return premiums as personal assets. The TPA's financial statement shall clearly show those funds which are held in trust accounts for the benefit of insurers and the liability section of the TPA's statement shall reflect the balances due companies from such trust accounts. A TPA shall not use fiduciary funds as collateral for a personal or business loan.(e) In order to meet its fiduciary obligations, a TPA shall set up a trust account in a bank or financial institution and maintain all fiduciary funds in such bank or financial institution until actually remitted to the insurer or person entitled thereto. The remittance of premiums shall be governed by the terms of the individual contracts or agreements between the TPA and insurer.N.H. Admin. Code § Ins 2301.08
#5787, eff 2-14-94; ss by #7023, eff 7-1-99; ss by #7318, eff 8-1-00, EXPIRED: 8-1-08
New. #9510, eff 7-10-09
Amended by Volume XXXVII Number 28, Filed July 13, 2017, Proposed by #12228, Effective 7/10/2017, Expires 7/10/2027.