[§431:9A-123.5]  Reporting and accounting
for premiums.  (a) Every licensed producer 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.  If the bank, savings and loan association, or financial services loan
company account is an interest earning account, the licensee may not retain the
interest earned on such funds for 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 431:9A-123.5, 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 subject to any penalties as provided
by law. [L 2002, c 155, pt of §3]