N.H. Code Admin. R. Ins 2301.10 - 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 its premium trust account in order to advance premiums, establish reserves
for paying return commissions or for such contingencies as might arise in the
business of receiving and transmitting premiums or return premium
funds.
(b) The TPA may retain a
portion of his or her 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 TPA 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 TPA'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 that results in
commingling the fiduciary funds with the TPA's personal funds.
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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