Fiduciary Capacity & Premium Accountability

A fiduciary occupies a position of special trust holding another's funds. All premiums, return premiums, and other funds received by an agent, agency, customer representative, or adjuster are trust funds received in a fiduciary capacity — they must be accounted for and paid to the insurer, insured, or person entitled, with books available to the Department/Office and preserved at least three (3) years after payment. Funds of each insurer the agent is NOT appointed for (other than surplus lines) go in a separate account; commingling with personal or agency funds breaches the duty. Diverting or misappropriating funds: $300 or less → first-degree misdemeanor; more than $300 but less than $20,000 → third-degree felony; $20,000 to less than $100,000 → second-degree felony; $100,000 or more → first-degree felony.

Premium money is never YOUR money — it passes through your hands in trust, in its own account, with a paper trail, or you're looking at felony charges.