Fiduciary Funds

Our Fiduciary Duty

The fiduciary relationship of wholesale brokers with insurance carriers and owners of premium funds defines the essence of the insurance fiduciary duty. Employees are mandated to receive premiums in a fiduciary capacity, that is, not as owners but as “trustees” or “custodians” of premium funds, which belong to insurance carriers. Premiums and return premiums must be maintained in a “trust” or IBA bank account, separate from Ryan Specialty’s own funds, and must only be disbursed to their legal owners.