Question

When may an insurance producer commingle customer premiums with the producer's personal bank account?

(a) When the producer will leave the funds on deposit for 30 days or less
(b) Only when the principle permits it
(c) Never
(d) When it is convenient for the producer

Answer 1

An insurance producer should never commingle customer premiums with their personal bank account, as it is both illegal and unethical.

Step-by-step explanation:

When may an insurance producer commingle customer premiums with the producer's personal bank account? The straightforward answer is c) Never. Commingling funds is an illegal and unethical practice in the insurance industry. Insurance producers are required to keep customer premiums separate from their personal funds. This is to ensure the financial integrity of customer funds and to maintain clear financial accounting practices. In the event that a producer does commingle funds, it can result in legal consequences, including fines, license suspension, or revocation.