State RegulationsGA specificDifficulty 3/5
A Georgia producer receives an applicant's premium and immediately deposits it into her personal savings account, planning to remit it to the insurer before the end of the month. Which statement is correct?
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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, premiums must be held in a fiduciary capacity, and depositing them into a personal account commingles fiduciary funds with personal assets. The violation is complete the moment the funds are mixed; full and timely remittance does not retroactively cure it. If the producer's temporary handling slips into use of the funds, willful misappropriation above $1,000 becomes a felony under § 33-23-35(c).
Why the other options are wrong
- A) Later remittance in full does not cure the commingling; the fiduciary violation is complete when the funds are deposited into a personal account.
- B) The Insurance Commissioner need not wait for an insurer complaint; the fiduciary rules are violated by the deposit itself.
- C) An applicant cannot waive the fiduciary standard; Georgia's premium-handling rules are not subject to private permission.
Memory hook
Intent to repay doesn't unmix the money.