P&COhiomedium
An Ohio producer collects $4,000 in premium from a client for an admitted insurer. Under R.C. 3905.14, the producer must:
ADeposit the funds into the producer's personal operating account until commission is calculated, which is expressly permitted under R.C. 3905.14
Hold the funds as a fiduciary, accounting promptly to the insurer or insured to whom they are due
CWire the funds directly to the policyholder's mortgagee
DConvert the funds to a cashier's check payable to ODI within 5 business days
Why this is the answer
Under R.C. 3905.14, all premiums and return premiums received by an Ohio producer are held in a fiduciary capacity. The producer must account for and pay the funds to the insurer, insured, or other person entitled to them. Commingling premium with personal or general operating funds violates the fiduciary duty and is disciplinable as misappropriation under R.C. 3905.14. The other options describe acts that would themselves constitute violations of Ohio law.
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