Client Money & Trust: Premium belongs to the insured and then to the carrier. Prove it every day

A daily premium trust ratio on collectible receivables, premiums payable to carriers aged on their account current, a posting control that keeps client money out of the operating account, two-signature commission sweeps and premium finance — inside Insurance Agency Management.

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Insurance Agency Management

Client Money & Trust in the Insurance Suites: Premium belongs to the insured and then to the carrier. Prove it every day

One number a principal can read every morning

Premium is not the agency's money, so the trust has to balance on its own. Every day the app reads trust cash and collectible premium receivable against premiums payable, client credits and binder bill, and stores the ratio, the surplus or shortfall and the standing. Only collectible premium counts: debt past the exclusion age counts for nothing, and a haircut ladder can count the 61 to 90 day bucket at less than face value. The accounts are read by the trust role set on each one, not by account number, so any chart of accounts in any jurisdiction maps without renumbering.

Owed to the carrier from the day it is invoiced

The agency owes the carrier transacted premium net of commission whether or not the insured ever pays, so the brokerage app posts that liability when the premium is billed, not when it is collected, and the trust ratio reads it from the ledger. The premiums payable register carries each amount owed with the gross premium, the levies collected with it and the commission retained, and ages it against that carrier's account current — days after the invoice, days after the month end, or a fixed day of the following month — never against the client's payment term. The gap between the two is the funding the agency carries itself, and the ageing is where it shows. The agency's own commission leaves the trust only through a sweep a second trust manager approves.

Sweeps to operating

Each month's commission moved out of client money, with the commission period it covers, the amount and its state — raised by one person, approved by another.

When a lender pays the premium, the return premium is the lender's

On a financed policy the finance company pays the carrier in full, so the agency earns its whole commission on the disbursement date instead of dripping in with the instalments, and the receivable moves from the client to the lender. The agreement carries the down payment, the amount financed, the APR and a level instalment schedule on simple interest that stays editable, because the lender's own paperwork is the authority. On cancellation the return premium clears the finance balance first and only the rest reaches the insured, and the commission chargeback follows the return premium the carrier actually issued.

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Everything in Client Money & Trust

21 items in 8 areas, every one shipping with the app today.

Reporting
- Today, yesterday, this week — on every listPremiums payable, sweeps and premium finance agreements filter by today, yesterday, this week, last week, this month, last month, this year and last year, on the date each one is due or dated.
Accounting
- The trust position is read from the ledgerThe trust ratio on this page is computed from the balances in the general ledger rather than from a table this app keeps, and the sweep rules are enforced whenever an entry is posted. What the regulator would recompute from the general ledger is what the screen shows.
Ratio
- Collectible receivables onlyDebt at or beyond the exclusion age counts for nothing, however large it is.
- A haircut ladderFour age buckets at 100, 100, 80 and 0 percent by default; a bucket can be counted at less than face value, never more.
- Warning band and floorWarn below 1.05, out of trust below 1.00; the floor cannot go under 1.00 and the warning must sit above it.
- One reading a dayA scheduled daily reading per company, or a reading on demand; one per company per day.
- Mapped by role, not numberCash, receivable, premiums payable, client credits and binder bill are roles set on the accounts.
Payables
- Owed from billingThe transacted liability is posted when premium is billed and is owed whether or not the insured pays.
- Net of commission, with leviesGross premium plus the levies collected with it, less the commission retained.
- Account current per carrierDays after the invoice, days after the month end, or a fixed day of the following month.
- Ageing that is never staleDays overdue and the ageing bucket are worked out on read, with filters for overdue and over 90 days.
Control
- Declared trust journalsOnly a journal declared as the premium trust journal may touch a fiduciary account.
- An allow-list for trust cashA carrier, a client refund or another trust account — anything else needs an approved sweep.
Sweeps
- Two signaturesRaised by one person and approved by a different trust manager, against a fresh reading of the trust.
- Surplus and floor checkedA commission sweep cannot take more than the surplus or leave the ratio under the floor.
- Refunds say who and whyA client refund out of the trust names the client and the reason.
Finance
- Level schedule on simple interestBuilt from the amount financed, APR and instalment count, then editable to match the lender's paperwork.
- Commission earned at disbursementThe lender pays the carrier in full and the receivable moves from the client to the lender.
- Return premium to the lender firstCancellation clears the finance balance before anything reaches the insured.
- Chargeback on what movedThe commission chargeback follows the return premium the carrier issued, on the short-rate basis.
Group
- Multi-companyConfiguration, readings and payables per company; the brokerage Overview applies the strictest band across the group.

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What Client Money & Trust works with

Client Money & Trust shares one database with the rest of the Insurance Suites and BridgeERP: these are the apps it already talks to, with nothing to buy in between.