Missouri § 375.051 - Producer held as trustee of money collected.

§ 375.051. Producer held as trustee of money collected.

1.  Any insurance producer who shall be appointed or who shall act on behalf of any insurance company within this state, or who shall, on behalf of any insurance company, solicit applications, deliver policies or renewal receipts and collect premiums thereon, or who shall receive or collect moneys from any source or on any account whatsoever, on behalf of any insurance company doing business in this state, shall be held responsible in a trust or fiduciary capacity to the company for any money so collected or received by him or her for the insurance company.

2.  Any insurance producer who shall act on behalf of any applicant for insurance or insured within this state, or who shall, on behalf of any applicant for insurance or insured, seek to place insurance coverage, deliver policies or renewal receipts and collect premiums thereon, or who shall receive or collect moneys from any source or on any account whatsoever, shall be held responsible in a trust or fiduciary capacity to the applicant for insurance or insured for any money so collected or received by him or her.

3.  Nothing in this section shall be construed to require any insurance producer to maintain a separate bank account or deposit for the funds of each payor, as long as the funds so held are reasonably ascertainable from the books of account and records of the insurance producer.

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(RSMo 1939 § 6018, A.L. 1955 p. 241, A.L. 1967 p. 516, A.L. 2001 S.B. 193)

Effective 1-01-03

(1954) This section does not cover situation where agent reports and remits all collections but falsely represents the identity of persons from whom collections are made. Trice v. Lancaster (A.), 270 S.W.2d 519.

(1962) Superintendent as receiver of company could recover from company's agents unearned premiums which they held on policies written prior to receivership and agents' commissions thereon, and agents' actions, subsequent to receivership but prior to receiving notice thereof, in canceling the policies and use of the unearned premiums to purchase insurance in another company was unlawful. Clay v. Independence Mutual Insurance Co. (Mo.), 359 S.W.2d 679.

(1963) This section does not limit civil liability of agent to account to insurer, and especially insurer's receiver, for only monies that agent has collected, and agent is liable to account also for monies that agent under his contract of employment should have collected, and to account to receiver for commissions on premiums unearned because of court order canceling all policies issued by insurer. Clay v. Eagle Reciprocal Exchange (Mo.), 368 S.W.2d 344.

---- end of effective  01 Jan 2003 ----

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