Insurance Trust Technology is not only
groundbreaking but also a paradigm change with major
implications on the way business will be performed in the
P&C insurance industry in the future.
Agency Fiduciary Duty
California Insurance Code mandates insurance brokers to
receive premium funds in a “fiduciary capacity” and maintain
them in separate “trust” bank accounts. As legal “trustees” of
insurance “trust accounts”, agency owners are made personally
responsible for violations of insurance “fiduciary duty”.
Similar requirements are written into law by most
The ultimate two questions in trust account management
are: (1) is the agency trust account financially solvent?
& (2) how can an agency owner verify it? After years of
research Paulmar determined insurance agency owners have no
way to verify solvency; they are exposed to fiduciary duty
violations without even realize it. One in three insurance
agencies in California is thought to operate out of trust
jeopardizing its business license and risking legal
prosecution for theft.
To help P&C insurance agency owners and industry as
a whole, Paulmar has developed a full scale Trust Account
Technology with three main objectives in the scope:
Development of new insurance fiduciary
accounting capable to support the
management of trust financial solvency. We branded it “TRUST LEDGER
of insurance trust account process, including receivables,
commission income, company remittance, return premium refunds
and personal funds maintained in the agency trust account. We
branded the software applications “NOBL
Development of Trust
TechnologyTM that enables insurance agencies to outsource
the trust account operation in the same way they outsource
the payroll. This technology will help especially those agencies seeking
to focus on core business and become more productive and more
Trust Account Technology does not help insurance agencies to
manage core business: marketing, sales and service. Current
agency management systems do it reliably. No agency management system
however offers P&C agencies fiduciary accounting and
trust financial solvency management tools.
Insurance Trust Account Technology offers
significant benefits to the
To see a graphic presentation of Insurance Trust
Account Technology click here.
For additional information