Virginia Insurance Agents and Fiduciary Accounts

Premium Trust Accounts for Virginia Insurance Agencies

Virginia does not require a Premium Trust Account for insurance agents, instead Virginia does require a fiduciary account separate from all other business and personal funds.

Here is a link to the law...

https://law.lis.virginia.gov/vacode/title38.2/chapter18/section38.2-1813/

§ 38.2-1813. Reporting and accounting for premiums.

A. All premiums, return premiums, or other funds received in any manner by an agent or a surplus lines broker shall be held in a fiduciary capacity and shall be accounted for by such agent or surplus lines broker. 

The Big Exception

Section D of this same link shows the one exception...

"D. This section shall not require any agent who is a duly appointed agent of an insurer and who has a written contractual relationship with such insurer which includes provisions regarding remittance of funds to maintain a separate fiduciary account for the funds. Such funds shall be held separately from any personal or nonbusiness funds and shall be reasonably ascertainable from the books of accounts and records of the agent."

You still need to funds kept in a separate account, but it does not have to be a "fiduciary account".