Va. Code » Title 38.2. Insurance » Chapter 18. Insurance Agents » Article 1. Definitions and General Provisions
Virginia Code

Va. Code Ann. § 38.2-1813 (2026)

Reporting and accounting for premiums

✓ laws through the 2026 session (checked Sept. 2026)
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A. All premiums, return premiums, or other funds received in any manner by an agent or a surplus lines broker shall be held in a fiduciary capacity and shall be accounted for by such agent or surplus lines broker. The agent or surplus lines broker shall, in the ordinary course of business, pay the funds to the insured or his assignee, insurer, insurance premium finance company or agent entitled to the payment.

B. With the exception of premium funds made payable to insurers or insureds for remittance and funds referred to in subsection D of this section, on and after January 1, 1993, all funds referred to in subsection A of this section shall be maintained in a fiduciary account separate from all other business and personal funds. Funds deposited into the separate fiduciary account may not be commingled or combined with other funds except for the purpose of advancing premiums, establishing reserves for the payment of return premiums, or establishing funds to maintain a minimum balance or to guarantee the adequacy of the account. The agent or surplus lines broker shall maintain an accurate record and itemization of the funds deposited into this account. The commission portion of any premiums deposited to this separate account may be withdrawn at the discretion of the agent or surplus lines broker.

C. For the purposes of this section, the separate fiduciary account of a licensed business entity shall be considered the fiduciary account of an individual agent or surplus lines broker acting on behalf of the licensed business entity.

D. This section shall not require any agent who is a duly appointed agent of an insurer and who has a written contractual relationship with such insurer which includes provisions regarding remittance of funds to maintain a separate fiduciary account for the funds. Such funds shall be held separately from any personal or nonbusiness funds and shall be reasonably ascertainable from the books of accounts and records of the agent.

1979, c. 513, § 38.1-327.12; 1986, c. 562; 1992, c. 49; 1993, c. 145; 2001, c. 706.

Notes of Decisions
Cited in 4 cases, 1988–2000 · leading case: Chiang v. Commonwealth, 365 S.E.2d 778 (Va. Ct. App. 1988).
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Chiang v. Commonwealth, 365 S.E.2d 778 (Va. Ct. App. 1988). · cites it 2× “12 (now Code § 38.2-1813) 1 to impose a fiduciary relationship on his dealings with Dugue.”
Cosby v. Commonwealth ex rel. State Corp. Comm'n, 450 S.E.2d 121 (Va. 1994). · cites it 6× “2-1813 provided in pertinent part: All premiums, return premiums, or other funds received in any manner by an agent-or a surplus lines broker shall be held in a fiduciary capacity.”
Fid. Nat'l Title Ins. Co. of N.Y. v. Madison Title & Escrow, Inc., 53 Va. Cir. 116 (Fairfax Cir. Ct. 2000). · cites it 3× “While the Commissioner did not elaborate on the agency theory, he did state that under § 38.2-1813 of the Virginia Code an *121 “agent has a duty to the underwriter to account for premiums and all other funds received in any manner by the agent shall be held in a fiduciary…”
Agency Servs. of Virginia, Inc. v. Canal Ins., 943 F. Supp. 592 (E.D. Va. 1993). “system in place between the relevant parties constituted an effective “return” of the unearned premiums to ASI, and whether the off-setting involved in that system contravened the State Insurance Rules, which also provides that “[n]o insurer or agent shall apply any return…”
Va. Code Ann. § 38.2-1813(A): 1 case
Fid. Nat'l Title Ins. Co. of N.Y. v. Madison Title & Escrow, Inc., 53 Va. Cir. 116 (Fairfax Cir. Ct. 2000). “While the Commissioner did not elaborate on the agency theory, he did state that under § 38.2-1813 of the Virginia Code an *121 “agent has a duty to the underwriter to account for premiums and all other funds received in any manner by the agent shall be held in a fiduciary…”
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