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State RegulationsGA specificDifficulty 1/5

A Georgia producer willfully misappropriates premium funds. The willful violation of the premium fiduciary rules is normally a misdemeanor, but becomes a felony when the amount exceeds:

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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(c), willful violation of the premium fiduciary rules is a misdemeanor, but it becomes a felony where the amount involved exceeds $1,000. The relatively low threshold signals how seriously Georgia treats premium theft. Producers who borrow client premiums risk felony exposure even at modest amounts.

Why the other options are wrong

  • A) $500 is another state's felony threshold; Georgia's line is drawn at $1,000 under O.C.G.A. § 33-23-35(c).
  • B) $5,000 is the alternative figure in the bad-faith penalty under O.C.G.A. § 33-4-6, not the felony threshold for premium misappropriation.
  • C) $10,000 is the per-act cease and desist penalty under O.C.G.A. § 33-6-9, not the felony threshold.

Memory hook

Over a grand, the misdemeanor becomes a felony.

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