How to record claim salvage recoveries
Recording the receipt of salvage or subrogation funds by an MGA acting on behalf of a carrier, to be held in trust.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Claim Trust Account Cash | Debit | 2,500.00 | - |
| Funds Held for Insurers | Credit | - | 2,500.00 |
💡 Accountant's Note
When an MGA collects salvage proceeds (e.g., from a totaled vehicle), the cash is held in a fiduciary capacity until remitted to the carrier.
Practitioner & Systems Framework
💻 ERP Architecture
Ensure the liability is tagged to the specific carrier and claim number for reconciliation.
⚠️ Audit Flags
Commingling salvage recoveries with broker commission accounts.
📄 Required Documentation
Salvage sale receipt and carrier remittance instructions.
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Discussion & Community Questions
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