Utah Administrative Code
Topic - Insurance
Title R590 - Administration
Rule R590-170 - Fiduciary and Trust Account Obligations
Section R590-170-5 - Maintaining a Trust Account

Universal Citation: UT Admin Code R 590-170-5

Current through Bulletin 2024-06, March 15, 2024

(1) Funds deposited into a trust account shall be limited to:

(a) premiums, which may include commissions;

(b) return premiums;

(c) fees or taxes paid with premiums;

(d) financed premiums;

(e) funds held pursuant to a third -party administrator contract;

(f) funds deposited with a title insurance agent regarding an escrow settlement or closing ;

(g) funds necessary to cover trust account bank charges ; and

(h) interest on the trust account, except as provided under Subsection 31A-23a-406(2)(b).

(2) Disbursements from a trust account shall be limited to:

(a) premiums paid to insurers;

(b) return premiums to policyholders;

(c) commission and fee transfers;

(d) fees or taxes collected with premiums paid to an insurer or taxing authority;

(e) funds paid pursuant to a third -party administrator contract;

(f) funds a title insurance agent disburses regarding an escrow settlement or closing; and

(g) accrued interest transfers.

(3) Personal or business expenses may not be paid from a trust account, even if the trust account has sufficient commissions to cover the personal or business expenses.

(4) A commission may not be disbursed from a trust account before the beginning of the policy period for which the premium is collected.

(5) A commission attributed to premiums and fees collected shall be disbursed from a trust account on a date no later than the first business day of the calendar quarter after the end of the policy period for which the funds were collected.

(6) A premium due to an insurer may not be paid from a trust account unless:

(a) the premiums relating to the amount due are being held in the trust account; or

(b) a licensee placed the funds in the trust account to finance premiums on the insured's behalf.

(7) Premiums financed by a licensee shall be accounted for as a loan and accrue interest at the contracted rate.

Disclaimer: These regulations may not be the most recent version. Utah may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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