NOBL Fiduciary Accounting and Financial Solvency Reporting

The Fiduciary (Trust) Accounting Add-On product automatically creates accounting records of premium and return premium transactions and reports the trust account financial solvency. It enables agency owners and/or outside auditors to reliably determine the agency trust financial solvency.

Currently, agencies use general ledger accounting for premium funds, which is known to have no reporting capability of trust financial solvency.

A. Why is NOBL Accounting Needed

NOBL Accounting product is fiduciary accounting at policy level. It uses new proprietary fiduciary accounting logic and new proprietary journal entries:

• Accounting process starts with the policy transaction (not invoice), the legal sale document of insurance products
• Accounting records are maintained at the policy level; they are aggregated at the “company” and “agency’ levels, as needed
• Receivables aging is no longer permitted in fiduciary (trust) accounting
• Distinguishes “current” fiduciary assets from fiduciary “non-current” assets;
• Distinguishes receivables “due but not payable” from receivable “due and payable” (by insured)
• Distinguishes fiduciary “current” liabilities from “non-current” fiduciary liabilities
• Distinguishes fiduciary “due and payable” liabilities from liabilities “due not-payable”
• Determines “premium float” as a difference between “premium receipts” and “premium disbursements”
• Places personal funds in separate ledger accounts so they can be reported separately
• Requires no “closing” (as in general ledger accounting)
• It captures financial transactions occurring outside the agency trust account (financed premium with direct remittance and direct refunds)
• Reports trust financial solvency both on “cash” basis and “account current” (accrual) basis
• No manual journal entries are permitted in fiduciary
• Fiduciary (trust) accounting is fully automated

B. What’s included

This Add-On creates accounting records, such as:

• Policy transactions
• Endorsements
• Billing
• Premium payments and bank deposits
• Short payments and NSF checks
• Uncollectible NSF checks
• Uncollectible invoices
• Commission income
• Company remittance
• Return premiums
• Premium refunds
• Premium receipts
• Premium disbursements
• Premium offsets
• Return premium reimbursements (cash, credit or from commission reserve)

C. Financial Management Reports (None available in current agency practice)

1. Trust Balance Sheet
2. Trust Statement of Receipts and Disbursements (Float Statement)
3. Financial Solvency Report
4. Premium Float Analysis
5. Statement of trust Funds Beneficiaries
6. Audit Trails of all 65 Trust Ledger Accounts
7. Financial management reports can be generated for each policy, each insurance company and agency.

D. How It Works

• Agency accesses the system Financial Reports
• Click on the desired report option
• Select Preview, Print or PDF (make sure printers are installed).

Paulmar will train agency managers to use the trust financial solvency reporting system.

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