Premium Trust Fund Account

[RTMoore]

Hello all,

Does anyone have any insight on how you've established your Premium Trust Fund Account (also known as Premium Trust Account)? In general, a Premium Trust Fund Account is a trust account that holds insurance premiums for the benefit of the insurance company. There's a surprising lack of online resources and the trust attorneys I've talked to locally have no experience setting one up.

Did you work with an attorney, did you do it yourself, or did your bank provide services to help setup your Premium Trust Fund Account account?

Any insight would be greatly appreciated.

RTMoore

 

[Cali man]

Sorry can't help but if someone can post some answers here this would be useful

 

[Caliban]

Sorry can't help but if someone can post some answers here this would be useful

So, the title under your name would be more appropriate if it read "Super Useless"?

Keep posting drivel, dummy.

 

[Thatguy]

Both your banking institution and a Trust attorney can assist with this. I would suggest you contact your personal banker and they will assist you in setting it up. Normally, this type of Trust account would be a non interest bearing account and if it is interest bearing then you will have to withdraw the interest on a regular basis.

I don't carry one, it's a very quick way to get in trouble with with securities side if you are licensed. I send my Trust accounting to my Trust attorney and let them handle it.

 

[RTMoore]

Thanks Tony for your post. It told me that I'm on the right track.

Unfortunately, our personal banker from Chase was actually no help. I've also contacted a number of attorneys (including some trust attorneys), and none of them had ever created a PTFA. Based on your post, I might consider contacting another institution and I'll also continue looking for an attorney that has experience with the PTFA. It might also help if I look for attorneys outside Washington state since WA's laws don't require PTFA to the same degree that other states do.

Are there any other references for attorneys or has anyone worked with a financial institution that was able to create the PTFA?

RTMoore

 

[Thatguy]

I can give you references for some in CA, but I have no idea what WA laws are like.

 

[RTMoore]

I've been able to contact several state insurance commissioners. In general, it appears that the states that require the PFTA no longer actually require fiduciary/trust accounts. In other words the statutes say the premiums must be kept in a "fiduciary account" but in reality they do not. This is why most of the attorneys I've talked to had no idea what a PFTA was.

You should check with your state's OIC and your attorney to determine exactly what is required for your premium account as there is some variance in the laws and how the laws are enforced between states.



RTMoore

 

[atlantainsguy]

I'd check with Mark Rosenthal to see if he has the NGL "Funeral Trust" product available.

atlantainsguy