Trust Ledger
AccountingTM
Ø
Trust Ledger AccountingTM
is insurance fiduciary accounting. It has been developed for the
specific needs of insurance premium and return premium
transactions. Trust Ledger Accounting enables agency managers
to monitor, control and report premium funds’ financial
solvency;
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Trust Ledger AccountingTM
requires premium funds to be placed in a separate ledger of
accounts so they can be separated from the agency general
funds, not only physically in different bank accounts but also
in the accounting process. To distinguish it from General
Ledger (GL) Accounting, Paulmar as branded insurance trust
accounting as Trust
Ledger (TL) AccountingTM;
Ø
Since
all agency management systems are currently GL
accounting-based, all P&C insurance agencies use General
Ledger (GL) accounting for premium financial management. Although suitable for
business operating funds, GL accounting is inadequate for
insurance premium and return premium transactions. Agencies
managers are currently unable to reliably monitor and control,
as required by law, the financial solvency of premium funds.
Ø
TL
accounting supports a reliable premium financial solvency
reporting system. The following reports are now available to
analyze trust account financial solvency:
1.
Trust Account Balance
SheetTM
2.
Receipts & Disbursements
StatementTM
(Premium Float StatementTM)
3.
Solvency AnalysisTM
4.
Premium Float AnalysisTM
5.
Statement of Trust Funds
BeneficiariesTM
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F
or more information on GL accounting’s inadequacy for
insurance premium transactions, click on the links below:
Is
General Ledger Accounting Adequate for P/C Insurance Premium
Transactions?
Part
Two: Is General Ledger Accounting Adequate for P/C Insurance
Premium Transactions?