Questions

Why is 120-day debt not a trust asset?

Because counting money that is not going to arrive is how a failing agency keeps producing a comfortable ratio. Receivables at or beyond the exclusion age count for nothing, and the haircut ladder can count younger buckets at less than face value.

Why is the payable recognised before the client pays?

Under the company-broker agreement the premium is owed to the carrier net of commission whether or not the insured pays. Recognising it at collection would understate what the agency owes by exactly its unpaid receivables.

Can somebody pay rent out of the trust account by picking the wrong journal?

No. An ordinary bank or cash journal cannot post to a fiduciary account, and trust cash cannot go to an operating account or an expense unless the entry belongs to an approved sweep.

Who can take the agency's commission out of the trust?

A trust officer raises the sweep; a different trust manager approves it. Approval takes a fresh reading and refuses a commission sweep larger than the surplus or one that would leave the ratio under the floor.

What happens when a financed policy is cancelled?

Enter the return premium the carrier issued. It clears the finance company's balance first, only the rest is due to the insured, and the commission chargeback is computed on that return premium.

Does it work across several companies?

Yes. Configuration, readings and payables are per company, and the brokerage Overview measures the group against the strictest band any of its companies has set.

Can we see it working first?

Open the live brokerage demo and press Log in — the form is already filled in. Client Money is its own menu in the Brokerage app, with 164 daily readings, 112 payables and 52 finance agreements.