Utah Admin. Code R590-170-5 - Maintaining a Trust Account

(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.

Notes

Utah Admin. Code R590-170-5

Amended by Utah State Bulletin Number 2022-12, effective 5/26/2022