State RegulationsGA specificDifficulty 2/5
A Georgia producer deposits clients' premium checks into his personal checking account and remits "whatever is left" at the end of the month. Under O.C.G.A. § 33-23-35, this practice is:
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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 that must be handled in a fiduciary capacity and not commingled with the producer's personal or operating money. Depositing client premiums into a personal account is commingling, and willful misappropriation of the funds is criminal — a felony once amounts exceed $1,000 under O.C.G.A. § 33-23-35(c).
Why the other options are wrong
- B) Eventual payment does not cure commingling; the separation duty applies from the moment the premium is received.
- C) Policyholder consent is irrelevant; the fiduciary duty runs to the insurer and the law, not to the client's tolerance.
- D) Georgia requires separation of fiduciary funds from personal funds, not their merger into one account.
Memory hook
Personal account plus premium checks = commingling, a Georgia violation.