N.H. Admin. Code § 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 .
Notes
#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
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