Handling of Funds. 8.1 E&S shall accept and maintain at all times all premium collected and other funds relating to the business underwritten by E&S under this Agreement in the capacity of a fiduciary and trustee for FPIC. The privilege of retaining commissions shall not be construed as changing the fiduciary capacity. 8.2 E&S shall establish and maintain a premium trust account designated "Frontier Pacific Insurance Company or Transre Insurance Services Premium Trust Account" in a bank mutually agreed by E&S and FPIC and shall deposit into such premium trust account all premiums collected by E&S hereunder. E&S shall have the right to transfer funds held in such premium trust account to successor banks with the prior written consent of FPIC. Such banks shall be members of the Federal Reserve System whose deposits are insured by the Federal Deposit Insurance Corporation. E&S shall be entitled to retain any interest earned on funds deposited in such premium trust accounts. 8.3 E&S shall maintain signature authority on such premium trust accounts and may use any and all premium and other funds collected by E&S under this Agreement for the following purposes: (a) Payments of amounts due FPIC pursuant to this Agreement; (b) Return of unearned premiums arising due to cancellation or endorsement of Policies underwritten or delivered by E&S; (c) Payment of compensation of E&S, Sub-producers, and Claims Control Corporation, a California claims adjuster, Anchor Claims Management, Inc., a Texas claims adjuster, and others, generally as described in Article 4; (d) Return of money deposited in error; (e) Withdrawal of interest due E&S hereunder; (f) Payments with respect to audits; and (g) Making of investments authorized by law. 8.4 E&S shall not commingle any funds in such premium trust accounts with funds in E&S' corporate accounts or other funds held by E&S in any other capacity. 8.5 E&S shall render accounts to FPIC detailing all premium trust account transactions, and remit to FPIC all funds due under this Agreement by the end of the month following the month during which E&S collected such funds for the account of FPIC. 8.6 Neither party shall be liable for any loss which occurs by reason of the default or failure of the bank in which an account is carried. 8.7 E&S shall refund commissions on Policy cancellations, reductions in premiums or any other return premiums at the same rate at which such commissions were originally retained.
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Handling of Funds. 8.1 E&S WESTCAP shall accept and maintain at all times all premium collected and other funds relating to the business underwritten by E&S WESTCAP under this Agreement in the capacity of a fiduciary and trustee for FPICUCIC. The privilege of retaining commissions shall not be construed as changing the fiduciary capacity.
8.2 E&S WESTCAP shall establish and maintain a premium trust account designated "Frontier Pacific WESTCAP Insurance Services or United Capitol Insurance Company or Transre Insurance Services Premium Trust Account" in a bank mutually agreed by E&S WESTCAP and FPIC UCIC and shall deposit into such premium trust account all premiums collected by E&S WESTCAP hereunder. E&S WESTCAP shall have the right to transfer funds held in such premium trust account to successor banks with the prior written consent of FPICUCIC. Such banks shall be members of the Federal Reserve System whose deposits are insured by the Federal Deposit Insurance Corporation. E&S WESTCAP shall be entitled to retain any interest earned on funds deposited in such premium trust accounts.
8.3 E&S WESTCAP shall maintain signature authority on such premium trust accounts and may use any and all premium and other funds collected by E&S WESTCAP under this Agreement for the following purposes:
(a) Payments of amounts due FPIC UCIC pursuant to this Agreement;
(b) Return of unearned premiums arising due to cancellation or endorsement of Policies underwritten or delivered by E&SWESTCAP;
(c) Payment of compensation of E&SWESTCAP's, Sub-producers, and Claims Control Corporation, a California claims adjuster, Anchor Claims Management, Inc., a Texas claims adjuster, ' and others, generally ' compensations as described in Article 4;
(d) Return of money deposited in error;
(e) Withdrawal of interest due E&S WESTCAP hereunder;
(f) Payments with respect to audits; and
(g) Making of investments authorized by law.
8.4 E&S WESTCAP shall not commingle any funds in such premium trust accounts with funds in E&S' WESTCAP's corporate accounts or other funds held by E&S WESTCAP in any other capacity.
8.5 E&S WESTCAP shall render accounts to FPIC UCIC detailing all premium trust account transactions, and remit to FPIC UCIC all funds due under this Agreement by the end of the month following the month during which E&S WESTCAP collected such funds for the account of FPICUCIC.
8.6 Neither party shall be liable for any loss which occurs by reason of the default or failure of the bank in which an account is carried.
8.7 E&S WESTCAP shall refund commissions on Policy cancellations, reductions in premiums or any other return premiums at the same rate at which such commissions were originally retained.
8.8 Neither UCIC nor WESTCAP shall offset any balances due under this Agreement with any amounts due under any other agreement between UCIC and/or its affiliates and WESTCAP and/or its affiliates.
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