Section R590-170-5 - Maintaining a Trust Account(1) Funds deposited into a trust account shall be limited to:(a) premiums, which may include commissions;(c) fees or taxes paid with 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.Utah Admin. Code R590-170-5
Amended by Utah State Bulletin Number 2022-12, effective 5/26/2022