New York: premium trust account rules
What New York requires of insurance producers holding premium funds, and what happens when those funds are diverted.
Citation
Ins. §§ 2110; 2120; 2127
Source chart last reviewed this jurisdiction: 2/25
What the jurisdiction requires
Every insurance agent shall be responsible in a fiduciary capacity for all funds received or collected in such capacity.
Penalties for diversion
The superintendent may refuse to renew, revoke, or suspend the license of any agent if, after notice and hearing, the superintendent determines that the licensee improperly withheld, misappropriated or converted any monies received in the course of insurance business in this state or elsewhere. In lieu of revoking or suspending the license, the superintendent may require the licensee to pay a sum not exceeding $500 for each offense, with a $2,500 aggregate limit for all offenses.
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 York trust account
Tie your premium trust account out three ways — bank, ledger and what you owe — with New York's cited rule beside the worksheet. Runs in your browser; nothing is uploaded.
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