Section Lab 408.08 - Commingling of Funds Prohibited(a) Under no circumstances shall a TPA place fiduciary funds in a personal or business operating account. The TPA may retain commission income or other funds in the TPA's premium trust account in order to advance premiums, establish reserves for paying return commissions or for such contingencies as may arise in his business of receiving and transmitting premiums or return premium funds.(b) The TPA may retain a portion of the TPA's unearned commissions in the premium trust account in order to avoid being short in the event of a policy cancellation. When a policy is canceled and the return premium is received by the TPA by means of a credit or otherwise, those funds shall be placed in the premium trust account until remitted to the self-insured entitled thereto.(c) Cash premium payments shall not be deposited into the TPA's personal or business operating account in order to draw a personal check in the amount of net premium payment to the self-insurer. The use of personal checks to transit fiduciary funds shall be prohibited in any situation that results in commingling the fiduciary funds with the TPA's personal funds.N.H. Admin. Code § Lab 408.08
#7142, eff 11-24-99, EXPIRED: 11-24-07
New. #9878-A eff 2-25-11
Amended by Volume XXXIX Number 28, Filed July 11, 2019, Proposed by #12815, Effective 6/26/2019, Expires 6/26/2029.