Such funds shall be maintained by the surplus lines agent in a separate account and shall not be mingled with any other funds, either business or private. 34 TAC 3.823 outlines maintenance of these tax trust accounts. The tax trust account must earn at least the rate payable on a passbook savings account.
Interest earned is the property of the state.
Fees associated with maintenance of the account may be deducted from interest income, but not from taxes deposited and due the state. Net earnings on the account after maintenance fee deductions must at least equal the minimum passbook rate. Upon receipt of taxes from the insured, the agent shall deposit the monies in the tax account promptly. A record of the monthly account balance from the bank or savings and loan must be maintained at all times in the agent's business office. The agent must also provide a copy of the account balance to the Texas Department of Insurance each month.