State RegulationsGA specificDifficulty 2/5
Which action by a Georgia producer constitutes unlawful commingling of premium funds?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under O.C.G.A. § 33-23-35, premiums are fiduciary funds, and commingling them with the producer's personal or operating money violates the fiduciary duty. Mixing client premium checks into a personal account treats fiduciary money as the producer's own and is the first step toward misappropriation, which becomes a felony above $1,000 under § 33-23-35(c). Separate fiduciary accounts are the compliant practice.
Why the other options are wrong
- B) A separate fiduciary account is exactly the compliant practice that keeps premium funds distinct from personal money.
- C) Electronic remittance from a properly segregated fiduciary account is a normal, lawful method of transmitting premiums.
- D) Holding client premiums in a dedicated fiduciary account, even if it earns interest, does not mix fiduciary funds with personal assets.
Memory hook
Own account, own trouble - fiduciary funds stay segregated.