State RegulationsGA specificDifficulty 2/5
A producer in Savannah collects premium dollars from clients and spends part of the money on personal expenses, misappropriating amounts exceeding $1,000 in total. In addition to license sanctions, what criminal classification applies to this conduct?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under O.C.G.A. § 33-23-35, premiums collected by a producer are held in a fiduciary capacity and may not be commingled with the producer's own funds. A willful violation is a misdemeanor, but when the amounts misappropriated exceed $1,000 the offense rises to a felony, exposing the producer to imprisonment in addition to the license sanctions the Commissioner may impose.
Why the other options are wrong
- A) Premium funds are fiduciary funds, not ordinary business debts, and the willful misappropriation here exceeds the felony threshold.
- C) Georgia law imposes criminal exposure for fiduciary violations; a willful violation is at least a misdemeanor and a felony above the threshold.
- D) No repeat-offense escalation exists in the statute; the felony classification depends on the dollar amount misappropriated, not on the number of convictions.
Memory hook
Steal a grand, lose your hand: $1,000 turns premium theft into a felony.