Paulmar Education Class C102
Class Number: Paulmar CE 102
Class Name: Fiduciary Task Management PART II – Insurance Trust Account Financial Solvency Management
Class Provider: Paulmar Group LLC, Lake Forest, CA 92630
Duration: 1 ½ to 2 Hours
Teacher: Chris Marinescu, Inventor and Founder of Paulmar Group,
Owner of Insurance Trust Account Technology (2017 US Patent)
Author of seventeen published articles on insurance trust financial solvency management
Two 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 maintained separately from agency’s operating funds both in accounting and bank accounts. They should be disbursed from the trust account only to their legal owners. Insurance agents and brokers are personally responsible for violation of fiduciary duty. Violations of fiduciary duty are punishable with a loss of business license and/or legal prosecution for theft as provided by law.
Fiduciary “task” includes all activities related to the carrying out of 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
- Trust Balance Sheet
- Trust Statement of Receipts & Disbursements
- Insurance Premium Float
- Trust Cash Balance Beneficiaries
- Record Keeping of Premium Funds
- Fiduciary violations, case studies
Handouts: Handouts are available to students by downloading them from the Paulmar Education website.
- Sections 1733 and 1734 of CA Insurance Code
- CA Bulletin 81-2
- Trust Financial Solvency Sample Reports
- CA Administrative Code, Title 10, Chapter 5, Subchapter 1, Article 1
- Articles written by Cristian Marinescu are available for downloading from the Paulmar Education website.
