Colorado: premium trust account rules
What Colorado requires of insurance producers holding premium funds, and what happens when those funds are diverted.
Citation
§§ 10-2-704; 10-2-801; 10-2-804
Source chart last reviewed this jurisdiction: 2/25
What the jurisdiction requires
All premiums received shall be treated in a fiduciary capacity.
Penalties for diversion
The commissioner may place an agent on probation, suspend, revoke or refuse to issue a license, or order restitution if an agent misappropriates, improperly withholds, or converts to the agent’s own use any money received during the course of business and belonging to insurers, policyholders or others. The commissioner may impose a civil penalty of not more than $3,000 for each violation or order restitution from an agent.
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 Colorado trust account
Tie your premium trust account out three ways — bank, ledger and what you owe — with Colorado'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.