Washington: premium trust account rules
What Washington requires of insurance producers holding premium funds, and what happens when those funds are diverted.
Citation
§§ 48.17.480; 48.17.530; 48.17.560; 48.98.015
Source chart last reviewed this jurisdiction: 2/25
What the jurisdiction requires
All premiums received by an agent shall be received in a fiduciary capacity and promptly accounted for and paid to the insurer. All funds collected for the account of an insurer will be held by the managing general agent in a fiduciary capacity.
Penalties for diversion
Diversion or misappropriation of funds shall constitute theft. The commissioner may place on probation, suspend, or refuse to renew a license for improperly withheld, misappropriated, or converted moneys received in the course of doing insurance business. In addition to or in lieu of a suspension, revocation, or refusal to renew a license the commissioner may levy a fine up to $1,000 for each offense.
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 Washington trust account
Tie your premium trust account out three ways — bank, ledger and what you owe — with Washington'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.