State RegulationsGA specificDifficulty 1/5
A Georgia producer willfully misappropriates premium funds. The willful violation of the premium fiduciary rules is normally a misdemeanor, but becomes a felony when the amount exceeds:
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Under O.C.G.A. § 33-23-35(c), willful violation of the premium fiduciary rules is a misdemeanor, but it becomes a felony where the amount involved exceeds $1,000. The relatively low threshold signals how seriously Georgia treats premium theft. Producers who borrow client premiums risk felony exposure even at modest amounts.
Why the other options are wrong
- A) $500 is another state's felony threshold; Georgia's line is drawn at $1,000 under O.C.G.A. § 33-23-35(c).
- B) $5,000 is the alternative figure in the bad-faith penalty under O.C.G.A. § 33-4-6, not the felony threshold for premium misappropriation.
- C) $10,000 is the per-act cease and desist penalty under O.C.G.A. § 33-6-9, not the felony threshold.
Memory hook
Over a grand, the misdemeanor becomes a felony.