Section Ins 4301.03 - Fiduciary Obligation(a) Insurance producers shall hold premiums and return premiums as a trustee, and not as the owner of the beneficial title to the funds.(b) Any money, or thing of value received by a producer as premium or return premium on or under any policy of insurance or application therefor, shall be received by the producer in a fiduciary capacity.(c) Any producer who appropriates to his/her own use, or, with intent to appropriate to his/her own use, takes, secretes, withholds, lends, invests or otherwise disposes of, uses or applies any such premium or return premium received by him/her, contrary to the instructions or without the consent of the insurer for or on account of which the same was received by him/her, shall be deemed to have violated this part, irrespective of whether he/she has or claims to have any commission or other interest in such premium or return premium.(d) Premiums and return premiums shall be received by an insurance producer in the producer's fiduciary capacity and the diversion of premiums or return premiums to the insurance producer's personal use shall violate the provisions of Ins 4301.04.(e) Insurance producers shall treat all premiums and return premiums as trust funds and segregate them from their own funds.(f) The insurance producer shall keep an accurate record of all fiduciary funds in accordance with Ins 4301.08. The insurance producer's financial statement shall clearly show those funds that are held in trust accounts for the benefit of insurers and that the liability section of the producer's statement shall reflect the balances due companies from such trust accounts. An insurance producer shall not use fiduciary funds as collateral for a personal or business loan or treat insurance premiums or return premiums as personal assets.(g) In order to meet fiduciary obligations, an insurance producer shall set up a premium trust account pursuant to Ins 4301.04 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 producer and insurer.N.H. Admin. Code § Ins 4301.03
(See Revision Note at chapter heading for Ins 4300) #8935, eff 8-1-07
Amended by Volume XXXV Number 45, Filed November 12, 2015, Proposed by #10963, Effective 10/26/2015, Expires 10/26/2025.