Paulmar Education Class 101
Class Number: Paulmar CE 101
Class Name: Fiduciary Task Management PART I: – Insurance Fiduciary Duty of P&C Insurance Agencies
Class Provider: Paulmar Group, Lake Forest, CA 92630
Duration: 1 ½ to 2 Hours
Teacher: Chris Marinescu, President of Paulmar Group, Inventor & Founder of Paulmar Group, Owner of Insurance Trust Account Technology (2017 US Patent)
Master’s degrees in civil-Structural Engineering and Engineering Economics
Background: CA Dept. of Insurance requires P&C insurance agents & brokers to receive premium funds in a fiduciary capacity, not as owners of funds but “trustees” or “custodians” of funds. This is the essence of insurance fiduciary duty. Premiums and return premiums must be separated from agency operating funds both in accounting and bank accounts. Trust funds can be disbursed only to their legal owners. Insurance agents and brokers are personally responsible for violation of fiduciary duty. Violations of fiduciary duty are punishable with potential loss of business license or in egregious violations with legal prosecution for theft as provided by law.
Fiduciary “task” includes all activities related to carrying out the insurance broker’s fiduciary duty.
Description: During this class students will learn about:
- Meaning of “fiduciary” position
- Reason why it is mandated by law
- Difference between “sellers” and “brokers”
- Advantages and disadvantages of fiduciary position
- Fiduciary funds
- Fiduciary duty management process
- Investment opportunities
- Violations of fiduciary duty
- Retailers vs. wholesalers
- Agency personnel’s obligations
- Fiduciary violation case studies
Handouts: Several handouts are available to students by downloading from the Paulmar Education website.
- CA Insurance Code, Sections 1733-1736
- CA Dept of Insurance Bulletin 81-02
- CA Administrative Code, Title 10, Chapter 5, Subchapter 1, Article 1
- Papers written be Cristian Marinescu may be downloaded from the website.
