Glossary
Operating Account
The bank account holding an agency's own funds — commission income, expenses, and payroll — kept strictly separate from the premium trust account.
The operating account is where the agency's actual money lives. Commission moves into it once earned and properly transferred out of trust; rent, salaries, and everything else are paid from it.
Keeping the boundary clean is the whole point. Every transfer between trust and operating should be traceable to specific earned commission, because an untraceable transfer is indistinguishable from commingling when a regulator examines the records.
See also
- Trust Account — A segregated bank account where an insurance agency holds premiums collected from clients on behalf of carriers. Strictl…
- Commingling — Mixing fiduciary premium funds with an agency's own operating money — a serious regulatory violation in every state.
- Sweep Account — An arrangement that automatically moves balances between bank accounts on a schedule, used by agencies to transfer earne…