376.1085. Premiums held in fiduciary capacity, duties--financial records, duties--withdrawals from fiduciary account by agreement only, contents--payment of claims.
Premiums held in fiduciary capacity, duties--financial records,duties--withdrawals from fiduciary account by agreement only,contents--payment of claims.
376.1085. 1. All insurance charges or premiums collectedby an administrator on behalf of or for an insurer or insurers,and the return of premiums received from that insurer orinsurers, shall be held by the administrator in a fiduciarycapacity. Such funds shall be immediately remitted to the personor persons entitled to them or shall be deposited promptly in afiduciary account established and maintained by the administratorin a federally or state insured financial institution. Thewritten agreement between the administrator and the insurer shallprovide for the administrator to render periodically anaccounting to the insurer detailing all transactions performed bythe administrator pertaining to the business underwritten by theinsurer.
2. If charges or premiums deposited in a fiduciary accounthave been collected on behalf of or for one or more insurers, theadministrator shall keep records clearly recording the depositsin and withdrawals from the account on behalf of each insurer.The administrator shall keep copies of all the records and, uponrequest of an insurer, shall furnish the insurer with copies ofthe records pertaining to such deposits and withdrawals.
3. The administrator shall not pay any claim by withdrawalsfrom a fiduciary account in which premiums or charges aredeposited. Withdrawals from such account shall be made asprovided in the written agreement between the administrator andthe insurer. The written agreement shall address, but not belimited to, the following:
(1) Remittance to an insurer entitled to remittance;
(2) Deposit in an account maintained in the name of theinsurer;
(3) Transfer to and deposit in a claims-paying account,with claims to be paid as provided for in subsection 4 of thissection;
(4) Payment to a group policyholder for remittance to theinsurer entitled to such remittance;
(5) Payment to the administrator of its commissions, feesor charges; or
(6) Remittance of return premium to the person or personsentitled to such return premium.
4. All claims paid by the administrator from fundscollected on behalf of or for an insurer shall be paid only ondrafts or checks of, and as authorized by, the insurer.
(L. 1993 H.B. 709 § 47)