Minnesota: premium trust account rules
What Minnesota requires of insurance producers holding premium funds, and what happens when those funds are diverted.
Citation
§§ 60K.43; 60K.46; 45.027; 60H.04
Source chart last reviewed this jurisdiction: 2/25
What the jurisdiction requires
All premiums or other money received by a producer from an insured or applicant for insurance must be promptly deposited directly in a business checking, savings, or other similar account maintained by the producer or agency, unless the money is forwarded directly to the designated insurer. Managing general agent shall hold in a fiduciary capacity all funds that are collected for the account of an insurer.
Penalties for diversion
If the commissioner finds that the agent has improperly withheld, misappropriated, or converted any money in the course of doing insurance business, the commissioner may do any or all of the following: deny, suspend, or revoke license, censure the license, or impose a civil penalty of not more than $10,000 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 Minnesota trust account
Tie your premium trust account out three ways — bank, ledger and what you owe — with Minnesota'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.