The carrier will usually refund premium to the finance carrier based on the rights of the finance agreement, except that if more refund premium exists than is needed to pay back the finance company, the insured should receive the remainder. Premium fund trust accounts I've always been amused by two common names for these accounts. They're really the same thing, although the statutes describing them may vary from state to state. If all your premiums are direct bill, then your PFTA is not going to be a problem. However, if carriers and insureds and regulators trust you to hold money in such an account, then there are statutory rules to follow.
Many agents are unaware of the rules for such accounts.
Investments as routine as money market funds may be prohibited if the money market fund invests in non-allowed investments. Even if your state has no specific rules about how you handle insurance trust funds, the general law regarding trusts and trustees has detailed rules as to how you handle funds placed in your care. Some states require an agent to receive written permission before keeping the interest generated by trust accounts. It used to be that insurance regulators audited the trust accounts of agents fairly regularly, but in these days of budget cutting for government, there are fewer government auditors around to do so. As a result, it is possible that an agency's trust funds may become depleted.