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



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



(1)  Remit the premiums (less commissions) and return
premiums received or held by the licensee to the insurers or the persons
entitled to such funds; or



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



The licensee shall not be required to maintain a
separate bank account or other account for the funds of each insurer or person
entitled to such funds, if and so long as the funds held for the insurer or
person entitled to such funds are reasonably ascertainable from the books of
account and records of the licensee.  Only such additional funds as may be
reasonably necessary to pay bank, savings and loan association, or financial
services loan company charges may be commingled with the premium funds.  In the
event the bank, savings and loan association, or financial services loan
company account is an interest earning account, such licensee may not retain
the interest earned on such funds to the licensee's own use or benefit without
the prior written consent of the insurers or person entitled to such funds.  A
premium trustee account shall be designated on the records of the bank, savings
and loan association, or financial services loan company as a "trustee
account established pursuant to section 431:9-230, Hawaii Revised
Statutes", or words of similar import.



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