[§431:9A-123.5]  Reporting and accountingfor premiums.  (a) Every licensed producer shall have the responsibilitiesof a trustee for all premium and return premium funds received or collectedunder this 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 berequired to maintain a separate bank account or other account for the funds ofeach insurer or person entitled to such funds, if and so long as the funds heldfor the insurer or person entitled to such funds are reasonably ascertainablefrom the books of account and records of the licensee.  Only such additionalfunds as may be reasonably necessary to pay bank, savings and loan association,or financial services loan company charges may be commingled with the premiumfunds.  If the bank, savings and loan association, or financial services loancompany account is an interest earning account, the licensee may not retain theinterest earned on such funds for the licensee's own use or benefit without theprior 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 431:9A-123.5, 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 subject to any penalties as providedby law. [L 2002, c 155, pt of §3]