How must premiums be handled according to fiduciary responsibility?

Premiums must be deposited in separate accounts to uphold fiduciary responsibility. This standard ensures that the funds belonging to clients or policyholders are protected and not co-mingled with personal funds of the agent or broker. By maintaining separate accounts, fiduciaries can effectively manage and account for client premiums, thus providing a layer of security and transparency.

Separating client funds from personal assets helps to prevent misuse and allows for accurate tracking of financial transactions. This is crucial to maintaining trust in the fiduciary relationship, as clients need assurance that their payments are being handled responsibly and ethically. It also adheres to regulatory requirements that govern the handling of client funds, reinforcing the integrity of the insurance profession.