The second class focuses upon the tasks required of agents and their staff to be fully compliant. Accounting system and record keeping is key to a fully compliant agency program. Effective operation requirements are all detailed in this second two-hour CE program class.
Class DOI No.: 363173
Paulmar Code: CE 102
Class Provider: Paulmar Group LLC, Orange County, CA
Provider ID: 373001
Duration: 2 Hours
CE Credits: 2
Instructor: Chris Marinescu, President of Paulmar Group LLC Owner and Developer of Insurance Trust Account Technology; Inventor of Insurance Trust Accounting Logic (US Patent No. 9,811,863);
DOI approved Class Instructor;
Author of several published articles on insurance trust accounting and trust account financial management; Master’s Degree in Civil/Structural Engineering and Engineering Economics
Background: CA Dept. of Insurance requires P&C insurance agents & brokers to receive and maintain premium funds in a fiduciary capacity, as “trustees” or “custodians”, not as owners of funds. This constitutes the essence of insurance fiduciary duty. Premiums and return premiums must be disbursed only to their legal owners. Agency owners are personally responsible for violations of fiduciary duty.
Fiduciary “task” includes all activities related to the carrying out insurance broker’s fiduciary duty.
Description: During this class students will learn about:
- P&C agency operation model as required for fiduciary compliance
- Insurance trust account management
- Insurance trust financial solvency
- Duality of insurance premium transaction
- Accounting vs. database records
- General Ledger Accounting vs. Insurance Premium Accounting
- Solvency Reporting Requirements
- Insurance Trust Balance Sheet
- Insurance Trust Statement of Receipts & Disbursements
- Insurance Trust Premium Float
- Insurance Trust Cash Balance Beneficiaries
- Premium Funds Record Keeping
Handouts: Several handouts are available for download as part of the course material:
- California Code of Regulations Title 10 Chapter 5 Subchapter 1 article 7
- Insurance Trust Financial Solvency Sample Reports
