Hawaii: premium trust account rules
What Hawaii requires of insurance producers holding premium funds, and what happens when those funds are diverted.
Citation
§§ 431:9-230; 431:9-235; 431:9-238; 431:9C-103
Source chart last reviewed this jurisdiction: 2/25
What the jurisdiction requires
Every licensed adjuster shall have the responsibility of a trustee for all funds and return funds received or collected. Managing general agent shall hold in a fiduciary capacity all funds that are collected for the account of an insurer.
Penalties for diversion
Any diversion or appropriation to personal use is embezzlement. The commissioner may suspend, revoke or refuse to renew any license if the licensee has misappropriated, converted or illegally withheld moneys required to be held in a fiduciary capacity to his own use. In addition to or in lieu of suspension, revocation or refusal to extend, after a hearing, the commissioner may levy a fine of not less than $100 and not more than $10,000.
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 Hawaii trust account
Tie your premium trust account out three ways — bank, ledger and what you owe — with Hawaii'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.