If an adjuster is a fiduciary agent and receives a premium, what must they do with it?

When an adjuster is considered a fiduciary agent, it means that they have a legal and ethical obligation to act in the best interest of the party they represent—in this case, typically the insurance company or the insured. When an adjuster receives a premium, they cannot simply keep the funds for personal use or invest them elsewhere.

The correct action is to deposit the premium into an insurance company account. This ensures that the funds are handled properly and kept separate from the adjuster's personal finances. It also maintains the trust and accountability required in fiduciary roles, as the money is intended for a specific purpose—namely, to fund an insurance policy and fulfill the contractual obligations of the insurer.

By depositing the premium into the designated insurance account, the adjuster ensures that the funds are secure, properly documented, and available for the intended insurance coverage, thus upholding their fiduciary responsibility. This action supports the integrity of the insurance process and fosters confidence in the management of funds associated with insurance policies.