How to record carrier claim recovery
Recording the replenishment of a claims trust account by an insurance carrier for claims paid by the MGA.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Fiduciary Cash | Asset | 25,000.00 | - |
| Claims Paid Receivable | Asset | - | 25,000.00 |
💡 Accountant's Note
When an MGA has claims authority, they pay claims from a trust account and then seek reimbursement from the carrier. This entry clears the receivable once the carrier remits funds.
Practitioner & Systems Framework
💻 ERP Architecture
Managed within the claims module or trust accounting sub-ledger.
⚠️ Audit Flags
Long-standing unreimbursed claims receivables and discrepancies between claim logs and cash receipts.
📄 Required Documentation
Carrier loss run, reimbursement request, and bank deposit record.
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Expert Analysis by Qusai Ahmad
General Accountant Supervisor & IFRS Specialist
Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.
Related Journal Entries
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Premium Trust Account — Client Premium Received (Not Broker Revenue — Fiduciary Obligation)
Discussion & Community Questions
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