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NAIC Fiduciary Model Not Adopted at Summer Meeting

The NAIC did not adopt the Fiduciary Responsibility of Insurance Producers Model Act at the June meeting in Boston. Rather, further conference calls will be...
June 22, 2005

The NAIC did not adopt the Fiduciary Responsibility of Insurance Producers Model Act at the June meeting in Boston. Rather, further conference calls will be held to discuss lingering issues with the model, including criminal violation language and the addition of a private cause of action to recover withheld premium funds.

What It Means to Agents:  While progress has slowed, the Producer Licensing Working Group remains committed to having this model passed this year. Recognizing that the NAIC will adopt a model that requires producers to place all premium funds in a fiduciary account, PIA agencies should review their premium handling practices.