State RegulationsGA specificDifficulty 2/5
A Georgia producer willfully converts premium funds for personal use. Under what condition does the offense rise from a misdemeanor to a felony?
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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(c), a willful violation of the premium fiduciary rule is a misdemeanor, but it becomes a felony once the amounts involved exceed $1,000. Because a single mid-size premium often exceeds that figure, producers face felony exposure quickly and must treat premium accounts with strict fiduciary care.
Why the other options are wrong
- B) $500 is not the Georgia threshold; the felony line is $1,000.
- C) The number of clients does not matter; the dollar amount controls.
- D) A cease and desist order is irrelevant to whether the conversion is a misdemeanor or a felony.
Memory hook
Over a grand, it's a felony — Georgia counts the dollars.