Texas Administrative Code
Title 28 - INSURANCE
Part 1 - TEXAS DEPARTMENT OF INSURANCE
Chapter 19 - LICENSING AND REGULATION OF INSURANCE PROFESSIONALS
Subchapter M - LICENSING AND REGULATION OF MANAGING GENERAL AGENTS
Section 19.1205 - Escrow Accounts
Current through Reg. 50, No. 13; March 28, 2025
(a) Separate and identifiable escrow accounts are allowed if such accounts meet all requirements of the Insurance Code, Article 21.07-3, and this subchapter.
(b) The managing general agent shall maintain all escrow accounts in a bank that is a member of the Federal Reserve System and whose accounts are insured by the Federal Deposit Insurance Corporation. Such accounts may consist of any one or all of the following vehicles listed in paragraphs (1)-(7) of this subsection:
(c) Other than as specified in subsection (b) of this section, the MGA may not place fiduciary monies from or in any escrow account into accounts or investments:
(d) All monies received by an MGA on behalf of an insurer, including without limitation, all premiums, policy fees, salvage and subrogation recoveries, and reinsurance recoveries, shall be deposited in the escrow account required by the Insurance Code, Article 21.07-3, §3C(c).
(e) All withdrawals from the escrow account required by the Insurance Code, Article 21.07-3, §3C(c), must be evidenced by detailed accounting which clearly reflects each withdrawal. Funds may be withdrawn from the escrow account only for the following purposes listed in paragraphs (1)-(8) of this subsection:
(f) Ownership of the interest on the escrow account required by the Insurance Code, Article 21.07-3, §3C(c), belongs to the MGA unless otherwise specified in the contract.