Illinois: premium trust account rules

Citation

215 ILCS 5/500-70; 5/500-115; 5/141a

Source chart last reviewed this jurisdiction: 2/25

What the jurisdiction requires

Any money received by an insurance producer is held in a fiduciary capacity. Managing general agent shall hold in a fiduciary capacity all funds that are collected for the account of an insurer.

Penalties for diversion

The director may place on probation, suspend, revoke or refuse to renew or issue a license if the licensee has improperly withheld, misappropriated or converted any moneys or properties received while doing business. The director may impose a civil penalty of $10,000 for each cause for denial, suspension, or revocation, however, the civil penalty may not total more than $100,000. If an insurance producer or surplus line producer knowingly misappropriates or converts to his or her own use or illegally withholds fiduciary moneys in the amount of $150 or less, he or she is guilty of a Class A misdemeanor for a first offense and a Class 4 felony for subsequent offenses. If an insurance producer or surplus line producer knowingly misappropriates or converts to his or her own use or illegally withholds premiums in excess of $150, he or she is guilty of a Class 3 felony.

Tie out a Illinois trust account

Tie your premium trust account out three ways — bank, ledger and what you owe — with Illinois's cited rule beside the worksheet. Runs in your browser; nothing is uploaded.