§ 27-2.4-19 - Fiduciary capacity of insurance producers – Misappropriation as theft.
SECTION 27-2.4-19
§ 27-2.4-19 Fiduciary capacity ofinsurance producers – Misappropriation as theft. – That portion of all premiums or moneys which a licensed insurance producercollects from a policyholder and which is to be paid to an insurance company,its agents, or his or her employer because of the assumption of liabilitythrough the issuance of insurance contracts, or which the insurance producercollects from an insurance company or its agents and which is to be paid to apolicyholder or claimant under any contract of insurance, shall be held by theinsurance producer in a fiduciary capacity and shall not be misappropriated orconverted to the insurance producer's own use or illegally withheld by theinsurance producer. Any insurance producer who converts or misappropriatesthese funds shall be held guilty of theft and punishable for theft as providedby law. Nothing contained in this section shall be deemed to require anyinsurance producer to maintain separate bank accounts or deposits for thesefunds if and so long as these funds held are reasonably ascertainable from thebooks of account and records of the insurance producer.