Client money account
A separate bank account of the insurance broker or appointed representative to hold money as agent of the insurer that conforms to the terms of the agreement with the insurer. The terms of the agreement between the insurance broker or appointed representative and the retail bank should clearly state that the client of the insurance broker or appointed representative retains full legal ownership of the funds. The terms of the bank agreement should also clearly state that only the following monies can be withdrawn from the client money account:
(a) Premium monies required to be paid on behalf of the client to (re)insurance firms or other insurance intermediaries for the purchase of contracts of insurance;
(b) Monies drawn on a client's written authority in accordance with the insurance contract; and
(c) Monies which may by mistake or accident have been paid into the account.
Added: April 2012