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03 AAC 23.530. Periodic Trial Balances and Reconciliations (a) A licensee who accepts trust money shall prepare a periodic trial balance and reconciliation of the control accounts required to be maintained under 3 AAC 23.520(a) . A trial balance and reconciliation must contain the following information: (1) the name of the licensee; (2) identity of the control account to which the trial balance relates; (3) preparation date of the trial balance; (4) name of the individual preparing the trial balance; (5) total dollar amount and identity, by category, of the money in the control account; (6) reconciling items, if any, between the total of the types of items on the trial balance and the balance of the applicable control account; and (7) a statement by the individual preparing the trial balance as to the agreement of the total of the trial balance taken together with reconciling items, if any, with the balance of the associated control account. (b) A trial balance and reconciliation of a trust money control account must also include the reconciliation of the balance of the applicable control account with the balance as shown on the related bank statement and an explanation of reconciling entries. (c) Individual items on the trial balance for a trust money control account required under 3 AAC 23.520(a) (1) must include the following if contained in the trust money account: (1) "additional" money belonging to the licensee, described in AS 21.27.360 (d); and (2) money, belonging to the licensee, to be used to pay financial institution service charges as described in 3 AAC 23.640(b) . (d) Specific premium payments in a licensee's trust money account not removed in accordance with a licensee's contract with an insurer (1) must, within 120 days of receipt, be investigated and returned to the person entitled to the money; or (2) may be held beyond 120 days after receipt only in accordance with written instructions from the insured. (e) A licensee's periodic trial balances of control accounts are considered records of a particular transaction, and shall be maintained for the period of time specified in AS 21.27.350 (b). (f) A balance forward system is, by itself, inadequate to meet the requirements of AS 21.27.350 , 21.27.360 or 3 AAC 23.520(b) . However, a balance forward system may be used as part of an adequate system of accounting for trust money. (g) Each failure to comply with (a), (b), (c), (e), or (f) of this section is a violation of AS 21.27.350 and 21.27.360. Authority: AS 21.06.090 AS 21.27.350 AS 21.27.360 |