Section 26-A3905. ESCROW OR TRUST ACCOUNTS

 

3905.1Any public insurance adjuster who receives, accepts or holds any moneys, on behalf of an insured, towards the settlement of a claim for loss or damage, shall deposit such moneys in an interest bearing escrow or trust account in a financial institution in the District of Columbia which is insured by an agency of the Federal government.

 

3905.2Any funds held in an escrow or trust account and interest accruing thereon shall be the property of the insured.

 

(a)Such moneys shall be held pursuant to a written agreement signed by the insured and by the public insurance adjuster which shall clearly specify:

 

(1)The services to be rendered; and

 

(2)The amount of any services to be paid from the escrowed funds.

 

(b)In the event of the insolvency and/or bankruptcy of a public insurance adjuster, the claim of an insured for any settlement moneys received, accepted or held by a public insurance adjuster shall constitute a statutory trust as provided at D.C. Official Code § 19-1102.

 

source

Emergency Rulemaking published at 50 DCR 5970(July 25, 2003) [EXPIRED]; as Final Rulemaking published at 50 DCR 3191 (April 25, 2003).