Premium Payments Deposited to Bank in Your State

Nine States Require You to Use a Bank in Their State

When an insurance agent accepts a premium payment from a customer it always creates a fiduciary responsibility for the insurance agent.

Most states have laws outlining many specifics of how these premium payments must be handled.

These states all require that the premium payments be deposited in a bank or other depository institution with a physical presence in the agent's state or at a minimum regulated by the agent's state's banking regulators.

States Requiring Bank Account in Agency’s State

1. California – see note
2. Hawaii
3. Illinois
4. Maryland
5. Nevada
6. New York
7. Utah
8. Washington
9. Wyoming

NOTE: California requirement is limited to cash payments received at agency. Checks and card payments can be out of state.