Section Ins 4301.05 - Commingling of Funds Prohibited(a) Under no circumstances shall an insurance producer place fiduciary funds in a personal or business operating account. The insurance producer may retain commission income or other funds in the premium trust account in order to advance premiums, establish reserves for paying return commissions or for such contingencies as may arise in the producer's business of receiving and transmitting premiums or return premium funds.(b) Insurance producers may retain a portion of their unearned commissions in the premium trust account in order to avoid being short in the event of a policy cancellation. When a policy is cancelled and the return premium is received by the insurance producer by means of a credit or otherwise, those funds shall be placed in the premium trust account until remitted to the insured entitled thereto.(c) Cash premium payments shall not be deposited into the insurance producer's personal account in order to draw a personal check in the amount of net premium payment to the insurer. The use of personal checks to transmit fiduciary funds shall be prohibited in any situation as it results in commingling the fiduciary funds with the producer's personal funds.N.H. Admin. Code § Ins 4301.05
(See Revision Note at chapter heading for Ins 4300) #8935, eff 8-1-07
Amended by Volume XXXV Number 45, Filed November 12, 2015, Proposed by #10963, Effective 10/26/2015, Expires 10/26/2025.