Virginia: premium trust account rules

Citation

§§ 38.2-218; 38.2-1813; 38.2-1831; 38.2-1360

Source chart last reviewed this jurisdiction: 2/25

What the jurisdiction requires

All premiums received in any manner by an agent shall be held in a fiduciary capacity. The agent shall account for and pay funds to the insurer when due. Managing general agent shall hold in a fiduciary capacity all funds that are collected for the account of an insurer.

Penalties for diversion

Any person who knowingly or willfully improperly withholds, misappropriates, or converts to one’s own use any money received during the course of business shall be penalized by not more than $5,000 per violation. Any person who unknowingly improperly withholds, misappropriates, or converts to one’s own use any money received during the course of business shall be penalized by not more than $1,000 per violation, and not by more than $10,000 on aggregate. In lieu of or in addition to the above penalty, the commission may place on probation, suspend, revoke or refuse to issue or renew any person’s license.

Tie out a Virginia trust account

Tie your premium trust account out three ways — bank, ledger and what you owe — with Virginia's cited rule beside the worksheet. Runs in your browser; nothing is uploaded.