Efforts To Shape Producer Fiduciary Model Continue
A producers fiduciary responsibility continues to get attention as state insurance regulators develop a model law that would offer a framework of requirements.
A recent discussion focused on sections 10 and 11 of the Fiduciary Responsibility of Insurance Producers model act draft which list prohibited practices in the use of fiduciary funds and requirements for timely disbursal of fiduciary funds.
The modelunder development for over five yearswould apply to all insurance producers receiving funds for the purpose of initiating or completing insurance transactions. The National Association of Insurance Commissioners says the model “should be helpful to states that do not have a law that prohibits producers from commingling funds. The model is intended to assist law enforcement and be a criminal deterrent among the producer community.”