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.
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