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Insurance Trust Account
Management (TAM) Class
Trust account solvency management is part of insurance agents/brokers’
fiduciary obligations. Premium funds received by insurance
agents/brokers in a fiduciary capacity must be maintained
in separate trust bank accounts and their solvency secured.
Trust account management is labor intensive and costly. It
requires adequate financial tools and a uniform reporting
system.
TAM class topics include:
- TA operation vs. agency business operation
- Two distinct operations with different
operating goals
- TA operation objective
- Understanding TA operation complexity
- Agency-Bill vs. Direct-bill operation
- TA management functions
- Premiums Receivable management
- Agency commission management
- Company remittance management
- Return premium credit and refunds
- TA management dual task
- Production management
- Financial management
- Premium funds accounting
- Commission income accounting
- TA solvency definition
- Financial solvency reporting
- Premium Float Statement
- Balance Sheet
- Trust Funds Beneficiaries Statement
- Premium funds record keeping
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