§431:9-230  Reporting and accounting forpremiums.  (a)  Every licensed adjuster shall have the responsibilities ofa trustee for all premium and return premium funds received or collected underthis article.

(b)  The licensee, upon receipt of the funds,shall either:

(1)  Remit the premiums (less commissions) and returnpremiums received or held by the licensee to the insurers or the personsentitled to such funds; or

(2)  Maintain the funds at all times in a federallyinsured account with a bank, savings and loan association, or financialservices loan company situated in Hawaii, separate from the licensee's ownfunds or funds held by the licensee in any other capacity, in an amount atleast equal to the premiums (net of commissions) and return premiums receivedby such licensee and unpaid to the insurers or persons entitled to such funds. Return premiums shall be returned within thirty days, unless directed otherwisein writing by the person entitled to the funds.

The licensee shall not be required to maintain aseparate bank account or other account for the funds of each insurer or personentitled to such funds, if and so long as the funds held for the insurer orperson entitled to such funds are reasonably ascertainable from the books ofaccount and records of the licensee.  Only such additional funds as may bereasonably necessary to pay bank, savings and loan association, or financialservices loan company charges may be commingled with the premium funds.  In theevent the bank, savings and loan association, or financial services loancompany account is an interest earning account, such licensee may not retainthe interest earned on such funds to the licensee's own use or benefit withoutthe prior written consent of the insurers or person entitled to such funds.  Apremium trustee account shall be designated on the records of the bank, savingsand loan association, or financial services loan company as a "trusteeaccount established pursuant to section 431:9-230, Hawaii RevisedStatutes", or words of similar import.

(c)  Any such licensee who, not being lawfullyentitled to such funds, diverts or appropriates such funds or any portion ofthem to the licensee's own use, shall be guilty of embezzlement, and shall bepunished as provided in the criminal statutes of this State. [L 1987, c 347, ptof §2; am L 1993, c 107, §3; am L 1995, c 232, §15; am L 2001, c 216, §15]