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.


N.H. Code Admin. R. Ins 2301.10

#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

Amended by Volume XXXVII Number 28, Filed July 13, 2017, Proposed by #12228, Effective 7/10/2017, Expires 7/10/2027.

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