§ 23-92-206 — Collection of premiums, etc. - Deposits and withdrawals

(a) An administrator is a fiduciary in collecting or returning premiums or charges for the party with whom it has a written agreement for administrative services. (b) Funds collected by the administrator shall be immediately remitted to the person entitled to the funds or deposited in a separately identifiable bank account which shall be established and maintained by the administrator. (c) The administrator shall maintain records clearly showing the deposits and withdrawals from the separately identifiable bank account for each party with whom it has a written agreement for administrative services. The administrator shall furnish to the party, upon his or her request, copies of the required records. (d) Subject to the written agreement required by § 23-92-202 , withdrawals from the bank account shall be made only for the following: (1) Remittance to a plan or trust entitled to the funds; (2) Deposit in an account maintained in the name of the party with whom the administrator has a written agreement; (3) Transfer to and deposit in a claims-paying account; (4) Payment to the administrator for its commission, fees, or charges; (5) Remittance of return premiums to the person entitled to the funds; or (6) Payment of funds for premiums of reinsurance or pursuant to the provisions of any other contract entered into by the trust or plan. (e) This section does not apply to a third-party administrator as defined in § 23-92-201 .

Legislative History

Amended by Act 2015, No. 689,§ 3, eff. 7/22/2015. Acts 1985, No. 796, § 5; A.S.A. 1947, § 66-6007.