Rhode Island: premium trust account rules
What Rhode Island requires of insurance producers holding premium funds, and what happens when those funds are diverted.
Citation
§§ 27-2.4-14; 27-2.4-19; 42-14-16
Source chart last reviewed this jurisdiction: 2/25
What the jurisdiction requires
All portions of premiums an agent collects, which are to be paid to an insurance company, shall be held in fiduciary capacity.
Penalties for diversion
The commissioner may place on probation, suspend, revoke or refuse to issue or renew license, or levy an administrative penalty not less than $100 and not more than $50,000 if a producer improperly withholds, misappropriates or converts money received during the course of business. Any insurance producer who converts or misappropriates funds is guilty of theft.
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 Rhode Island trust account
Tie your premium trust account out three ways — bank, ledger and what you owe — with Rhode Island'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.