Iowa: premium trust account rules
What Iowa requires of insurance producers holding premium funds, and what happens when those funds are diverted.
Citation
§§ 510.17; 510.8; 510.5
Source chart last reviewed this jurisdiction: 2/25
What the jurisdiction requires
Insurance charges or premiums collected by a third-party administrator must be held in a fiduciary capacity and they must be immediately remitted to the person entitled to them or deposited in a fiduciary bank account. All funds collected for the account of an insurer will be held by the managing general agent in a fiduciary capacity.
Penalties for diversion
If there is a violation, the commissioner may impose for each separate violation, an administrative penalty of not more than $10,000, revoke or suspend the producer’s license, or bring a civil suit seeking reimbursement for any losses.
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 Iowa trust account
Tie your premium trust account out three ways — bank, ledger and what you owe — with Iowa'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.