OAR 836-074-0020
Premium Funds Trust Account
(1)
Except as otherwise provided in OAR 836-074-0025 (Deposit and Payment of Funds), an insurance producer shall deposit in one or more premium funds trust accounts all premium funds received by the insurance producer under the insurance producer’s license. Each trust account must be located in this state unless the Director gives written permission to the insurance producer to keep the account in another state. In applying for permission, the insurance producer must give written justification for keeping the account outside this state;(2)
An insurance producer shall maintain each trust account in one or more of the following forms:(a)
In the form of a checking account, demand account, savings account or other account in a state or national bank or savings bank, a state or federal savings association or a state or federal credit union. A trust account under this subsection must be insured by the United States Government or an agency or instrumentality thereof. However, such insurance need not exceed $100,000 for each account or the amount at any time in the account, whichever is less;(b)
In the form of an account that solely invests, either directly or through an investment fund, in any or all of the following instruments: United States government bonds and Treasury certificates or other obligations for which the full faith and credit of the United States are pledged for payment of principal and interest, repurchase agreements collateralized by securities issued by the United States and bankers acceptance;(c)
In the form of an account in an open-end investment company registered under the Investment Company Act of 1940 that:(A)
Limits its portfolio investments to United States-dollar denominated instruments that the board of directors determines present minimal credit risks and that are either of high quality as determined by a nationally recognized statistical rating organization or, in the case of an instrument that is not rated, of comparable quality as determined by the board of directors; and(B)
May not purchase any instrument with a remaining maturity of greater than one year or maintain a dollar-weighted average portfolio maturity that exceeds 120 days.(3)
Premium funds may be placed in an account under section (2) of this rule only if the premium funds are readily available from the account for payments when due.(4)
Each check or other instrument drawn on a trust account must clearly identify that it is drawn on an insurance premium funds trust account.(5)
An insurance producer must make each trust account of the agent accessible to the Director for purposes of examination and audit.(6)
A trust account may be interest-bearing.(7)
For the purpose of OAR 836-074-0005 (Statutory Authority; Effective Date) to 836-074-0050 (Single Account for Affiliated Persons), all premium funds received by an insurance producer on or under any policy of insurance are received in the fiduciary capacity of the insurance producer.
Source:
Rule 836-074-0020 — Premium Funds Trust Account, https://secure.sos.state.or.us/oard/view.action?ruleNumber=836-074-0020.