MISCELLANEOUS
§ 37.81. Premium accounts.
(a) Insurance agents and brokers who have the express written consent of their entities to mingle premium moneys with their own funds may do so if the following exist:
(1) Moneys held in a fiduciary capacity are reasonably ascertainable from the books of account and records of the agents or brokers.
(2) Amounts due entities are equal to or less than the combined accounts receivable and current bank balances.
(b) An agent or broker who does not have the express consent of his entities to mingle premium moneys with his personal funds shall hold the premium moneys separate from other funds in accordance with the following:
(1) An agent or broker who does not make immediate remittance to his entities may not deposit premiums in office operating accounts but shall keep the moneys in a separate bank account from which disbursement may not be made other than for the payment of premiums to the entities, the return of premiums to the insured or the transfer of commissions or the withdrawal of voluntary deposits.
(2) Voluntary deposits in the premium account in excess of premiums collected and unpaid to entities may be made for the purpose of maintaining a minimum balance, to guarantee the adequacy of the account or for the purpose of the payment of premiums to the entities in advance of their collection. These deposits may not be withdrawn except to the extent that the remaining balance is equal to the total of net premiums collected and unpaid to entities.
(3) The deposit of a premium collection in a separate bank account may not be construed as a mingling by the agent or the broker of the net premium and of the commission portion of the premium. The commission portion of the premiums may be withdrawn from the separate bank account at the discretion of the agent or broker.
(4) The maintenance in a separate bank account of at least the net balance of premiums collected and unpaid to the entities by agents operating under the ‘‘account current system’’ shall be construed as compliance with this section and section 633.1 of the act (40 P. S. § 273.1), if the funds so held are readily ascertainable from the books of account and records of agents.
(5) Agents and brokers who make immediate remittance of collections to their entities need not maintain separate bank accounts for these collections. To constitute immediate remittance, payment to entities shall be in the same form as the collection was received from the insured.
(6) When both an operating and a premium account are maintained by agents and brokers under this section for purposes of segregating premiums collected, the premium account balance shall include funds sufficient to pay premiums collected and any amount delinquent or in dispute with the entity represented. Upon reconciliation of delinquent or disputed accounts, excess moneys remaining in the premium bank account may be withdrawn as if they had been voluntary deposits.
(7) An agent may deposit premiums collected from insureds in an interest bearing account when the agent is not required to make an immediate remittance to the entity of premium moneys, if the following are met:
(i) The moneys are not placed in an account upon which a penalty may be levied against the principal for early withdrawal.
(ii) The moneys are placed in an account insured by the United States Government or instruments secured by the United States government.
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