Common use of Collection and Disposition of Funds Clause in Contracts

Collection and Disposition of Funds. All insurance premiums or other funds collected by LMG on behalf of IIC, and return premiums received from IIC, shall be processed by LMG in a fiduciary capacity for IIC and will not be used as general operating funds of LMG. Such funds shall be immediately, within two (2) business days, remitted to the person or persons entitled to them or shall be deposited promptly, within two (2) business days, in the Premium Fiduciary Account established in the name of IIC. LMG will have no authority to withdraw funds directly from the Premium Fiduciary Account. This account will be maintained by LMG in a federally or state insured financial institution, separate and apart from any funds belonging to LMG or third parties. IIC will also establish a Zero-Balance Controlled Disbursement Account, which will be funded by the Premium Fiduciary Account based on the amount of disbursements clearing on each day. The list of authorized check signers for the Disbursement Account will include employees of IIC and LMG. LMG will immediately notify IIC of any required changes to the list of authorized check signers due to terminations or additions of staff. IIC will promptly file these changes with the Bank. LMG will maintain, in a fiduciary capacity, the Zero-Balance Controlled Disbursement Account where IIC will fund the balance, through the Premium Fiduciary Account and LMG is authorized to make the following disbursements: a. Payment to LMG of its out-of-pocket expenses, as defined in Appendix B, Section 3a, and weekly commissions. b. Remittance of return premium to the person or persons entitled thereto. c. Any policy/certificate holder disbursements, including payment of claims and claims adjustment expenses. IIC will also establish and fund a separate account for the sole purpose of processing policyholder drafts, which allows them direct access to a portion of their policy values. IIC will also establish an operating account for LMG's Rome, Georgia administration unit. Monthly account reconciliations for these accounts will be performed by LMG and provided to IIC by the last day of the subsequent month. A list of the bank accounts is attached to this agreement for reference and will be updated as required.

Collection and Disposition of Funds. All insurance premiums or other funds collected by LMG on behalf of IICHxxxxxx, and return premiums received from IICHxxxxxx, shall be processed held by LMG in a fiduciary capacity for IIC and will not be used as general operating funds of LMG. Such funds shall be immediately, within two (2) business days, days be remitted to the person or persons entitled to them or shall be deposited promptly, within two (2) business days, in the a Premium Fiduciary Account. Such Premium Fiduciary Account established will be held in the name of IICHxxxxxx. LMG will have no authority to withdraw funds directly from the Premium Fiduciary Account. This account However, it will be established and maintained by LMG in a federally or state insured financial institution, separate and apart from any funds belonging to LMG or third parties. IIC This Premium Fiduciary Account will also establish at all times have a Zero-Balance Controlled Disbursement balance equal to contributions plus any interest earned less, authorized disbursements by Hxxxxxx. If LMG is authorized to draw checks on the Premium Fiduciary Account, which this will be funded clearly indicated on their face. LMG may not pay any claim by withdrawals from the aforementioned Premium Fiduciary Account. Withdrawals from the Premium Fiduciary Account based on shall be made as provided in this Agreement between LMG and Hxxxxxx for any of the amount following: a. Remittance to Hxxxxxx, if so entitled to such remittance; b. Deposit in an account maintained in the name of disbursements clearing on each day. The list of authorized check signers for the Disbursement Account will include employees of IIC Hxxxxxx; c. Transfer to and LMGdeposit in a claims-paying account, with claims to be paid as provided by Hxxxxxx. LMG will immediately notify IIC of any required changes to the list of authorized check signers due to terminations or additions of staff. IIC will promptly file these changes with the Bank. LMG will maintain, maintain in a fiduciary capacity, the Zero-Balance Controlled Disbursement Account Accounts where IIC Hxxxxxx will fund the balance, through the Premium Fiduciary Account balance and LMG is authorized to make the following disbursements: a. Payment to LMG of its out-of-out of pocket expenses, as defined in Appendix B, Section 3a, and weekly commissions. b. Remittance of return premium to the person or persons entitled thereto. c. Any policy/certificate holder disbursements, including payment of claims. LMG will pay claims from funds collected on behalf of Hxxxxxx and shall be paid only on drafts of, and as authorized by Hxxxxxx. In the event that LMG receives monies to pay claims on behalf of Hxxxxxx, such funds will be held in a fiduciary capacity. No deposits will be made into or disbursements made from this fiduciary account except for claims and claim adjustment expenses. This fiduciary account will at all times have a balance equal to the amount deposited less claims and claims adjustment expenses. IIC will also establish and fund a separate account for the sole purpose of processing policyholder drafts, which allows them direct access to a portion of their policy values. IIC will also establish an operating account for LMG's Rome, Georgia administration unit. Monthly account reconciliations for these accounts will be performed by LMG and provided to IIC by the last day of the subsequent month. A list of the bank accounts is attached to this agreement for reference and will be updated as requiredexpenses paid.

Collection and Disposition of Funds. All insurance premiums or other funds collected by LMG on behalf of IICXxxxxxx, and return premiums received from IICXxxxxxx, shall be processed held by LMG in a fiduciary capacity for IIC and will not be used as general operating funds of LMG. Such funds shall be immediately, within two (2) business days, days be remitted to the person or persons entitled to them or shall be deposited promptly, within two (2) business days, in the a Premium Fiduciary Account. Such Premium Fiduciary Account established will be held in the name of IICXxxxxxx. LMG will have no authority to withdraw funds directly from the Premium Fiduciary Account. This account However, it will be established and maintained by LMG in a federally or state insured financial institution, separate and apart from any funds belonging to LMG or third parties. IIC This Premium Fiduciary Account will also establish at all times have a Zero-Balance Controlled Disbursement balance equal to contributions plus any interest earned less, authorized disbursements by Xxxxxxx. If LMG is authorized to draw checks on the Premium Fiduciary Account, which this will be funded clearly indicated on their face. LMG may not pay any claim by withdrawals from the aforementioned Premium Fiduciary Account. Withdrawals from the Premium Fiduciary Account based on shall be made as provided in this Agreement between LMG and Xxxxxxx for any of the amount following: a. Remittance to Xxxxxxx, if so entitled to such remittance; b. Deposit in an account maintained in the name of disbursements clearing on each day. The list of authorized check signers for the Disbursement Account will include employees of IIC Xxxxxxx; c. Transfer to and LMGdeposit in a claims-paying account, with claims to be paid as provided by Xxxxxxx. LMG will immediately notify IIC of any required changes to the list of authorized check signers due to terminations or additions of staff. IIC will promptly file these changes with the Bank. LMG will maintain, maintain in a fiduciary capacity, the Zero-Balance Controlled Disbursement Account Accounts where IIC Xxxxxxx will fund the balance, through the Premium Fiduciary Account balance and LMG is authorized to make the following disbursements: a. Payment to LMG of its out-of-out of pocket expenses, as defined in Appendix B, Section 3a, and weekly commissions. b. Remittance of return premium to the person or persons entitled thereto. c. Any policy/certificate holder disbursements, including payment of claims. LMG will pay claims from funds collected on behalf of Xxxxxxx and shall be paid only on drafts of, and as authorized by Xxxxxxx. In the event that LMG receives monies to pay claims on behalf of Xxxxxxx, such funds will be held in a fiduciary capacity. No deposits will be made into or disbursements made from this fiduciary account except for claims and claim adjustment expenses. This fiduciary account will at all times have a balance equal to the amount deposited less claims and claims adjustment expenses. IIC will also establish and fund a separate account for the sole purpose of processing policyholder drafts, which allows them direct access to a portion of their policy values. IIC will also establish an operating account for LMG's Rome, Georgia administration unit. Monthly account reconciliations for these accounts will be performed by LMG and provided to IIC by the last day of the subsequent month. A list of the bank accounts is attached to this agreement for reference and will be updated as requiredexpenses paid.

Collection and Disposition of Funds. All insurance premiums or other funds collected by LMG on behalf of IICTransamerica, and return premiums received from IICTransamerica, shall be processed held by LMG in a fiduciary capacity for IIC and will not be used as general operating funds of LMG. Such funds shall be immediately, within two (2) business days, days be remitted to the person or persons entitled to them or shall be deposited promptly, within two (2) business days, in the a Premium Fiduciary Account. Such Premium Fiduciary Account established will be held in the name of IICTransamerica. LMG will have no authority to withdraw funds directly from the Premium Fiduciary Account. This account However, it will be established and maintained by LMG in a federally or state insured financial institution, separate and apart from any funds belonging to LMG or third parties. IIC This Premium Fiduciary Account will also establish at all times have a Zero-Balance Controlled Disbursement balance equal to contributions plus any interest earned less, authorized disbursements by Transamerica. If LMG is authorized to draw checks on the Premium Fiduciary Account, which this will be funded clearly indicated on their face. LMG may not pay any claim by withdrawals from the aforementioned Premium Fiduciary Account. Withdrawals from the Premium Fiduciary Account based on shall be made as provided in this Agreement between LMG and Transamerica for any of the amount following: a. Remittance to Transamerica, if so entitled to such remittance; b. Deposit in an account maintained in the name of disbursements clearing on each day. The list of authorized check signers for the Disbursement Account will include employees of IIC Transamerica; c. Transfer to and LMGdeposit in a claims-paying account, with claims to be paid as provided by Transamerica. LMG will immediately notify IIC of any required changes to the list of authorized check signers due to terminations or additions of staff. IIC will promptly file these changes with the Bank. LMG will maintain, maintain in a fiduciary capacity, the Zero-Balance Controlled Disbursement Account Accounts where IIC Transamerica will fund the balance, through the Premium Fiduciary Account balance and LMG is authorized to make the following disbursements: a. Payment to LMG of its out-of-out of pocket expenses, as defined in Appendix B, Section 3a, and weekly commissions. b. Remittance of return premium to the person or persons entitled thereto. c. Any policy/certificate holder disbursements, including payment of claims. LMG will pay claims from funds collected on behalf of Transamerica and shall be paid only on drafts of, and as authorized by Transamerica. In the event that LMG receives monies to pay claims on behalf of Transamerica, such funds will be held in a fiduciary capacity. No deposits will be made into or disbursements made from this fiduciary account except for claims and claim adjustment expenses. This fiduciary account will at all times have a balance equal to the amount deposited less claims and claims adjustment expenses. IIC will also establish and fund a separate account for the sole purpose of processing policyholder drafts, which allows them direct access to a portion of their policy values. IIC will also establish an operating account for LMG's Rome, Georgia administration unit. Monthly account reconciliations for these accounts will be performed by LMG and provided to IIC by the last day of the subsequent month. A list of the bank accounts is attached to this agreement for reference and will be updated as requiredexpenses paid.