California Insurance Code

§ 1733

INS § 1733 Effective Jul 23, 2021Div. 1 · Part 2 · Ch. 5 · Art. 12

Statute text

All funds received by any person acting as a licensee under this chapter, Chapter 5A (commencing with Section 1759), Chapter 6 (commencing with Section 1760), or Chapter 7 (commencing with Section 1800), as premium or return premium on or under any policy of insurance or undertaking of bail, are received and held by that person in that person’s fiduciary capacity. A person who diverts or appropriates those fiduciary funds to that person’s own use is guilty of theft and punishable for theft as provided by law. Any premium that a premium financer agrees to advance pursuant to the terms of a premium finance agreement shall constitute fiduciary funds as defined in this section only if actually received by a person licensed in one or more of the capacities herein specified.

Legislative history

Amended by Stats. 2021, Ch. 133, Sec. 21. (SB 272) Effective July 23, 2021.