Deposit into the trust account or operating account?
Posted: Thu Dec 13, 2012 10:14 am
I wanted to get the opinion of other brokers and agents.
If an insured pays with a check, and commission needs to be taken out of the payment, which would be better:
A. Deposit the insured's check into the trust account, and write a check to your agency from the trust account for the commission amount, and deposit that into your operating account.
B. Deposit the insured's check into the operating account, and write a check to your agency from the operating account (minus the commission) and deposit that into the trust account.
I feel that option B would be the correct choice, as the insured's check is a premium payment, and premium payments should always be deposited into the trust account. My colleague disagrees, and claims that option A is better, because option B shows you taking money from the trust account, which should only be for insured's premium payments.
Your thoughts?
If an insured pays with a check, and commission needs to be taken out of the payment, which would be better:
A. Deposit the insured's check into the trust account, and write a check to your agency from the trust account for the commission amount, and deposit that into your operating account.
B. Deposit the insured's check into the operating account, and write a check to your agency from the operating account (minus the commission) and deposit that into the trust account.
I feel that option B would be the correct choice, as the insured's check is a premium payment, and premium payments should always be deposited into the trust account. My colleague disagrees, and claims that option A is better, because option B shows you taking money from the trust account, which should only be for insured's premium payments.
Your thoughts?