Connecticut: premium trust account rules
What Connecticut requires of insurance producers holding premium funds, and what happens when those funds are diverted.
Citation
§§ 38a-712; 38a-774; 38a-90c
Source chart last reviewed this jurisdiction: 2/25
What the jurisdiction requires
Producer is to remit premium payments from insureds to insurer within 30 days following the due date of the account. Managing general agent shall hold in a fiduciary capacity all funds that are collected for the account of an insurer.
Penalties for diversion
If the commissioner finds a producer failed to remit payment of premiums to the proper company, he may suspend or revoke the license of the producer. In addition, or in lieu of suspension or revocation, the commissioner may impose a fine up to $5,000.
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 Connecticut trust account
Tie your premium trust account out three ways — bank, ledger and what you owe — with Connecticut'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.