Interpreted as “returned merchandise”, return premiums are processed as negative invoices neglecting that, before writing a refund check, the agency must receive from the insurance company the return net premium and from the agency’s business operating account the “unearned commission”. It is significant to note that, although the custodian’s ultimate fiduciary duty is to keep the trust account financially solvent, the state-issued trust account guidelines for RE brokers do not specifically identify solvency as a management target. It is apparent the guidelines consider the keeping of receipts and disbursements journals and ledgers of trust beneficiaries is sufficient; an accountant will determine if the escrow account is financially solvent. Guidelines to RE brokers for trust accounting procedures have been issued by different states to help bookkeepers create reliable accounting records and for trustees to avoid fiduciary violations. The ensuing result is an accounting mess that causes agency’s owners to have no control over premium trust funds while exposing them to potential fiduciary duty violations.

While trust fund transactions in either RE or legal professional practice generate no “income”, in the P&C retailing industry, due to a 45-year old unfortunate practice, premium invoice does create “income” records. Intense programming of premium and return premium transactions has resulted in the achievement of some major automation goals. While “unearned” net premium is generally reimbursed on Co Statements as credit, seldom or never agencies return to the agency trust account the “unearned commissions”. Agencies will refund from the trust account return “gross” premiums without returning/reimbursing first the “unearned commissions”. Financial solvency is reported for each trust account beneficiary. Trust accounting is an open-ended accounting concept currently used to support financial management of trust funds by not-for-profit organizations. The erroneous set up of the P&C premium invoice accounting made it impossible for agency owners to have “trust account balance sheets” and/or “premium float statements”. Trust funds are money, or any other property, received by a broker in a fiduciary capacity to manage it for the benefit of others (legal owners). This a great advantage of insurance educational since it allows quotas to conform to each applicant’s ability and are also comfortable for the family economy. Those who currently have a job, and have health insurance from patriotic employers, will be asked to pay additional taxes so we can, as a nation, save or create millions of new patients in this Great Society II.

300 billion in new taxes on health insurance benefits that millions get from their employers. While it is not possible to make an HSA rollover to an IRA account, these accounts still offer many benefits. So you’ll either have to pre-pay your rent, mail it from wherever you’re vacationing, or have a trusted friend or family member drop it off on time while you’re away. In some cases you will have to cover the excess yourself. Insurance reforms will require health insurance carriers to cover all existing medical conditions. Medicare helps seniors cover healthcare costs, but it isn’t free. 1 trillion health-care bill that would be fully funded by tax increases, Medicare cuts and new penalties for employers who do not offer health insurance. These penalties will create new opportunities for workers to seek jobs with other employers after losing their job due to unpatriotic employers who resist the change you can believe in. Finally, this health care reform bill will save or create new penalties for employers who refuse to toe the line and recognize their patriotic duty of offering health insurance.

Agencies use AMS, Applied Systems or similar agency management software, to manually reconcile the company statements by verifying statement line items against the agency’s invoice payments. The most egregious downside of P&C agency’s current trust accounting practice is its inability to support agency income accounting necessary to determine the agency’s “earned” commission income. The uncontrolled transfer of commission funds out of the agency’s trust account is a major source of trust financial insolvency. Balance Sheets and Trust Float Statements will be available for each trust funds beneficiary, especially critical when there are multiple trust beneficiaries in a single trust account. Medicare and Medicaid beneficiaries alike will be called upon to save or create more income just to maintain their level of care. Several software vendors offer trust accounting products to attorneys (listing on Capterra website) to help them separate trust funds from business operating funds and establish trust account beneficiaries.