Arkansas: premium trust account rules
What Arkansas requires of insurance producers holding premium funds, and what happens when those funds are diverted.
Citation
§§ 23-64-216; 23-64-223; 23-64-404
Source chart last reviewed this jurisdiction: 2/25
What the jurisdiction requires
Agent shall pay premiums to the insurer or any other person entitled thereto. Managing general agent shall hold in a fiduciary capacity all moneys that are collected for the account of an insurer.
Penalties for diversion
Any unlawful diversion is theft of property. The insurance commissioner may place on probation, suspend or revoke a licensee if the licensee improperly withheld, misappropriated, or converted any moneys received in the course of an insurance transaction. In addition to a suspension or revocation of a license the insurance commissioner may impose a penalty of up to $1,000 per violation, or up to $5,000 per violation for willful misconduct. The insurance commissioner may also order restitution of actual losses to affected persons.
This reference is not legal advice. Citations and summaries are transcribed from the NAIC's Fiduciary Responsibilities—Premiums chart (Spring 2025) and reflect that chart's own review dates, which vary by jurisdiction. Statutes change, and the chart may lag the current code. Confirm the current text of any provision with the jurisdiction's insurance department or your own counsel before relying on it.
Tie out a Arkansas trust account
Tie your premium trust account out three ways — bank, ledger and what you owe — with Arkansas's cited rule beside the worksheet. Runs in your browser; nothing is uploaded.
Trust account reconciliation worksheetKeep your trust account provably in balance
Policy Balance Hub tracks premium held in trust against what you owe each carrier, so the reconciliation an examiner asks for already exists.