Posted by Tim on 1/06/02

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I have a cyberstore that sells items from jewerly to yo-
yo's.
I also have an insurance agency, with a premium trust
account. No Credit Cards accepted with the company I
represent

I had an insured that was on the deadline for paying
premiums, he asked if there was anyway that he could pay
over the phone due to a 3 hour drive and specifically asked
for the credit card option.

I explained that the Ins. Company didn't have any options
like this, but that I had a merchant account that I could
accept check by phone.

The insured didn't want to do that and he insisted on using
a credit card. I told him tongue in cheek that he may have
to purchase 30 glass mexican chiwawa's from the cyberstore
and then I could transfer those funds to the Insurance
premium trust account and pay his auto premium as soon as
the funds were available.
Question:
1. Is this considered by the insurance commisioner or legal
commingling? How about intent. (My intent was to help him)
The funds are never used for personal purchases.

2. Have any laws been broken in the fiduciary area as long
as I paid the funds directly to the insurance company as
soon as the money was available from the merchant account?

3. What about funds going from a store account to an
insurance premium trust account. This account is used
solely for forwarding premiums to the ins. company in the
event that the insured pays in cash.

Help on this would be much appreciated.

commingling funds, 1/06/02, by Tim.

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