NRS 683A.400 - Money received and held in fiduciary capacity by producer of insurance, surplus lines broker, motor club agent or bail agent.

NV Rev Stat § 683A.400 (2019) (N/A)

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1. All money of others received by any person in any way licensed or acting as a producer of insurance, surplus lines broker, motor club agent or bail agent under any insurance policy or undertaking of bail is received and held by the person in a fiduciary capacity. Any such person who diverts or appropriates such fiduciary money to his or her own use is guilty of embezzlement.

2. Each such person who does not make immediate remittance of the money to the insurer or other person entitled thereto, shall elect and follow with respect to money received for the account of a particular insurer or person either of the following methods:

(a) Remit received premiums, less applicable commissions, if any, and return premiums to the insurer or other person entitled thereto within 15 days after receipt; or

(b) Establish and maintain in a commercial bank, credit union or other established financial institution depositary in this state one or more accounts, separate from accounts holding his or her general personal, firm or corporate money, and forthwith deposit and retain in the accounts pending transmittal to the insurer or other person entitled thereto, all such premiums, net of applicable commissions, if any, and return premiums. Money belonging to more than one principal may be so deposited and held in the same such account if the amount so held for each principal is readily ascertainable from the records of the depositor. The depositor may commingle with such fiduciary money in a particular account such additional money as the depositor may deem prudent to advance premiums, establish reserves for the payment of return commissions, or for other contingencies arising in his or her business of receiving and transmitting premiums or return premiums.

3. Such a person may commingle with his or her own money to an unlimited amount money of a particular principal if the principal in writing in advance has specifically waived the segregation requirements of subsection 2.

4. Any commingling of money with money of any such person permitted under this section does not alter the fiduciary capacity of that person with respect to the money of others.

(Added to NRS by 1971, 1653; A 1997, 3378; 1999, 1550; 2001, 2209)

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