What is required from agents regarding client premiums?

Agents are required to keep client premiums separately from their personal funds to ensure the proper handling and safeguarding of client money. This practice is crucial for maintaining trust and professionalism in the insurance industry. By keeping premiums in a separate account or fund, agents can avoid the commingling of funds, which could lead to potential legal issues, mismanagement, or loss of client funds.

Maintaining a clear distinction between client funds and personal finances is not only a best practice but is often mandated by state laws and regulations. This separation helps to protect both the client's interests and the agent's professional integrity, ensuring that all premiums are accounted for and used appropriately, solely for the insurance transactions intended by the client.