Maryland: premium trust account rules
What Maryland requires of insurance producers holding premium funds, and what happens when those funds are diverted.
Citation
Ins. §§ 10-126; 8-208; COMAR 31.03.03.01 to 31.03.03.06
Source chart last reviewed this jurisdiction: 2/25
What the jurisdiction requires
Every producer acting as such shall hold the premium payments separate from other funds in accordance with regulation. Managing general agent shall hold in a fiduciary capacity all moneys that are collected for the account of an insurer.
Penalties for diversion
The commissioner may deny, suspend, revoke or refuse to renew a license if the holder has misappropriated, converted or unlawfully withheld money that belongs to an insurer, producer, beneficiary, or insured. The commissioner may also require the violator pay restitution to any citizen who suffered financial injury because of the violation, and/or the commissioner may impose a fine not less than $100 but not more than $5,000 per violation.
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 Maryland trust account
Tie your premium trust account out three ways — bank, ledger and what you owe — with Maryland'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.