RIBO Level 1 Practice Questions - RIBO Level 1 Entry-Level Broker Exam

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Under RIBO regulations, when is a brokerage permitted to transfer commission funds from the Trust Account to the Operating Account?

Immediately upon receiving a post-dated check from the client. Only after the net premium has been paid to the insurer. Once the commission is earned, which is generally when the premium has been collected from the client or billed by the insurer. At any time, provided the brokerage maintains a minimum balance of $10,000 in the Trust Account.

Correct Answer:

Once the commission is earned, which is generally when the premium has been collected from the client or billed by the insurer.

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