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(a) An administrator is a fiduciary in collecting or returning premiums or charges for the party with whom it has a written agreement for administrative services.
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(b) Funds collected by the administrator shall be immediately remitted to the person entitled to the funds or deposited in a separately identifiable bank account which shall be established and maintained by the administrator.
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(c) The administrator shall maintain records clearly showing the deposits and withdrawals from the separately identifiable bank account for each party with whom it has a written agreement for administrative services. The administrator shall furnish to the party, upon his or her request, copies of the required records.
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(d) Subject to the written agreement required by § 23-92-202, withdrawals from the bank account shall be made only for the following:
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(1) Remittance to a plan or trust entitled to the funds;
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(2) Deposit in an account maintained in the name of the party with whom the administrator has a written agreement;
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(3) Transfer to and deposit in a claims-paying account;
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(4) Payment to the administrator for its commission, fees, or charges;
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(5) Remittance of return premiums to the person entitled to the funds; or
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(6) Payment of funds for premiums of reinsurance or pursuant to the provisions of any other contract entered into by the trust or plan.
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(e) This section does not apply to a third-party administrator as defined in § 23-92-201.
