(1) MONEYS HELD IN FIDUCIARY CAPACITY. An administrator shall hold in a fiduciary capacity all moneys that the administrator collects or receives on behalf of other persons. Within 2 business days after collection or receipt of such moneys, the administrator either shall pay the moneys to the persons entitled to them or shall deposit the moneys in a fiduciary account established and maintained by the administrator in a financial institution. (2) FIDUCIARY ACCOUNT RECORDS. An administrator shall maintain fiduciary account records in accordance with generally accepted accounting principles. The administrator shall retain the fiduciary account records pertaining to a principal for at least 5 years beginning on the date of creation of the records. If an administrator deposits in a fiduciary account moneys that the administrator has collected on behalf of more than one principal, the administrator shall keep records of the account that clearly indicate deposits made under sub. (1) and withdrawals made under sub. (4) on behalf of each principal. Upon request by a principal, the administrator shall provide the principal copies of those portions of the records pertaining to deposits and withdrawals made on behalf of the principal and shall otherwise permit inspection by the principal as provided under s. 633.06 (2). (3) INTEREST ON DEPOSITS. Interest earned on moneys deposited in a fiduciary account is the property of the principal unless otherwise provided in the written agreement required under s. 633.04. (4) WITHDRAWALS FROM FIDUCIARY ACCOUNT. (a) An administrator may not pay any claim by withdrawal from a fiduciary account. (b) An administrator may make the following payments from a fiduciary account: 1. To a principal, the funds belonging to the principal. 2. To an employee benefit plan policyholder for payment to a principal, the funds belonging to the principal. 3. To an insured employee, the funds belonging to the insured employee. 4. To another account maintained in the name of a principal, the funds belonging to the principal. 5. To a claims paying account, the funds belonging to a principal for payment of claims owed by the principal. 6. To the administrator, commissions, fees or charges owed the administrator by a principal.
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