Revised Code of Washington - RCW Title 48 Insurance - Section 48.17.600 Separation of premium funds

§ 48.17.600. Separation of premium funds

(1) All funds representing premiums or return premiums received by an agent, solicitor or broker in his or her fiduciary capacity shall be accounted for and maintained in a separate account from all other business and personal funds.

(2) An agent, solicitor or broker shall not commingle or otherwise combine premiums with any other moneys, except as provided in subsection (3) of this section.

(3) An agent, solicitor or broker may commingle with premium funds any additional funds as he or she may deem prudent for the purpose of advancing premiums, establishing reserves for the paying of return premiums, or for any contingencies as may arise in his or her business of receiving and transmitting premium or return premium funds.

(4) Each willful violation of this section shall constitute a misdemeanor.

(5) This section shall not apply to agents for title insurance companies or insurance brokers whose average daily balance for premiums received on behalf of insureds in the state of Washington equals or exceeds one million dollars.

[1988 c 248 § 15; 1986 c 69 § 1.]

Notes:
     Effective date -- 1986 c 69: "This act shall take effect on January 1, 1987." [1986 c 69 § 2.]

     RCW 48.17.600

Separation of premium funds. (Effective July 1, 2009.)

(1) All funds representing premiums or return premiums received by an insurance producer or title insurance agent in the insurance producer's or title insurance agent's fiduciary capacity shall be accounted for and maintained in a separate account from all other business and personal funds.

(2) An insurance producer or title insurance agent shall not commingle or otherwise combine premiums with any other moneys, except as provided in subsection (3) of this section.

(3) An insurance producer or title insurance agent may commingle with premium funds any additional funds as the insurance producer or title insurance agent may deem prudent for the purpose of advancing premiums, establishing reserves for the paying of return premiums, or for any contingencies as may arise in the insurance producer's or title insurance agent's business of receiving and transmitting premium or return premium funds.

(4) Each willful violation of this section shall constitute a misdemeanor.

[2007 c 117 § 33; 1988 c 248 § 15; 1986 c 69 § 1.]

Notes:
     Effective date -- 1986 c 69: "This act shall take effect on January 1, 1987." [1986 c 69 § 2.]

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Last modified: April 7, 2009