New Jersey: premium trust account rules
What New Jersey requires of insurance producers holding premium funds, and what happens when those funds are diverted.
Citation
N.J.A.C. 11:17C-2.1; N.J.S.A. 17:22A-40; 17:22A-45
Source chart last reviewed this jurisdiction: 2/25
What the jurisdiction requires
All premium funds shall be held in a fiduciary capacity and shall not be misappropriated, improperly converted to the insurance producer’s own use, or illegally withheld by the licensee.
Penalties for diversion
The commissioner may place on probation, refuse to issue or renew a license, revoke or suspend a license or levy a civil penalty or any combination of these, if he finds, after notice and a hearing, that a producer misappropriated, converted, or illegally withheld money received during the course of business. A civil penalty for a first offense will not exceed $5,000, the second offense will not exceed $10,000.
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 New Jersey trust account
Tie your premium trust account out three ways — bank, ledger and what you owe — with New Jersey'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.