How Do You Handle Your Premium/Trust/Agency Bill Customer Fund Account

[infoe]

When I was captive, we had a premium fund account for payments that the farm would then sweep. It was simple.

I've only done 3 or 4 agency bill policies since Ive started In Feb and Ive deposited those funds into my operating account and then sent the money to the carrier.

For accounting purposes I have to assume this CAN'T be the best way.

So what bank do you have the premium fund account with if you have one? (id want to have a fee free one, because for the low amount of agency bill policies I do..other wise it wouldnt be worth it)

Do you hold a balance in that account or just bring over the commissions once premium or down payment has been paid to the carrier?

Any other pieces of advise would be appreciated.

 

[cottonland]

Check with your state ins dept. there should be a statute governing premium trust accounts. They should be able to give you the guidelines.

 

[iiinycboi]

general guidelines is you have to open a seperate checking.

no commingling premium funds. just open a second checking a name it YOUR AGENCY PREMIUM ACCOUNT

but make sure your DOI says the same thing.

i have a free no interest one. you can only transfer funds out if their commission, interest earn, or premiums to be paid to carrier or insured. that's it. if you get technical commission can only be transfer out when they are "earned." must keep good records so you can adequately show whose money is whose.