Separation of premium funds.
(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.]
| Effective date -- 1986 c 69: "This act shall take effect on January 1, 1987." [1986 c 69 § 2.]|