Louisiana: premium trust account rules
What Louisiana requires of insurance producers holding premium funds, and what happens when those funds are diverted.
Citation
§§ 22:1554; 22:1564
Source chart last reviewed this jurisdiction: 2/25
What the jurisdiction requires
Payments to a producer shall be payment to the insurer with all resultant obligations and duties.
Penalties for diversion
The commissioner may suspend or revoke a license if he finds the licensee improperly withheld, misappropriated, failed to timely remit premium, or converted to one’s own use any money received during the course of business belonging to policyholders, insurers, or others. Or a fine of not more than $500 per violation may also be assessed. Any person who intentionally withholds or fails to timely remit premiums or converts to his own use money belonging to others entitled to the money shall be guilty of theft or unauthorized use of a movable.
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 Louisiana trust account
Tie your premium trust account out three ways — bank, ledger and what you owe — with Louisiana'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.