The Idaho Department of Insurance Commissioner (“Department”) has recently released Bulletin No. 26-10, regarding money handling and fiduciary funds, applicable to all insurance producers. The key highlights are as follows:
- Idaho allows multiple producers to maintain and hold fiduciary funds in a single trust fund account or for producers to collect and deposit funds into a sweep account maintained by or for an applicable insurer.
- Each producer is still responsible for compliance with Idaho laws, even if funds are maintained in a fiduciary fund account established by another affiliated producer or in a sweep account.
- Fiduciary funds must be maintained in a federally insured account, with specific allowances only for the funds that exceed the federally insured limit.
- Producers must account for all fiduciary funds and ensure fiduciary funds are paid to the person entitled to the funds. The Department will pursue violations, as appropriate, against any producer who has violated fiduciary fund requirements.
- Common examples of mishandling of fiduciary funds include:
- Not maintaining proper receipts of fiduciary funds.
- Not having a separate “trust fund account” set up for depositing and distributing fiduciary funds.
- Not meeting required timelines for depositing and distributing fiduciary funds.
- Not maintaining proper records of collections, deposits, and disbursements from fiduciary fund accounts.
- Not following permissible fiduciary fund distribution guidelines.
- Not properly distributing fiduciary funds held for more than 90 days.
- Co-mingling fiduciary funds with other funds.
- Diverting or misappropriating fiduciary funds for personal use.
Please note that this bulletin became effective upon issuance on July 1, 2026.
For any questions related to the above referenced bulletin in Idaho, please contact Westmont Associates!