17 April 2023
In accordance with section 3.1 (1) of the Insurance Act, the Superintendent of Insurance exempts any Restricted Insurance Representatives from deposit-taking institutions or who are subject to the Insurance Companies Act, SC 1991, c. 47, from the requirement to hold a trust account under section 364(1) of the Insurance Act and Part 14 of Rule INS-001 Insurance Intermediaries Licensing and Obligations.
The exemption is subject to the following terms and conditions:
a. Premiums received from an insured for an insurance contract shall be paid to the insurer within 15 days of receiving a written demand from the insurer, less commission and any other deductions authorized in writing by the insurer.
b. Any money or premium credit received from an insurer which represents return premium due to an insured, shall be paid along with any unearned commission or other refund to which the insured is entitled within 90 days of receipt or within 15 days after written demand from the insured, whichever is earliest.
c. All books and records in connection with the business are to be kept current and readily distinguish:
(i) All money received from or on behalf of and all money paid to or on behalf of each insurer and insured; and
(ii) All money received and paid on the business’s behalf
Please refer to Blanket Order INS-2023-01 for more information about this exemption.
For any questions about this bulletin, contact the Insurance Division of FCNB at 866-933-2222 or email@example.com.