What does commingling in insurance refer to?

Commingling in the context of insurance refers to the illegal mixing of an agent's or broker's personal funds with their client’s premiums. This practice is prohibited because it poses a risk to the financial integrity of the insurance funds and can lead to unethical behaviors and potential fraud. Agents and brokers are required to keep client premiums in a separate trust account, ensuring that there is a clear distinction between company or client funds and personal funds. This approach protects consumers' interests and maintains the professionalism and responsibility of insurance agents.

The other options do not accurately describe commingling. While combining different insurance policies or developing joint accounts with clients may involve collaboration, such practices do not relate to the improper handling of funds. Similarly, sharing policy details with co-workers is a normal part of working in an insurance environment and does not involve financial mismanagement. Hence, the only option that correctly captures the essence of commingling is the illegal mixing of premiums and personal funds.