State RegulationsGA specificDifficulty 2/5
A Georgia producer in Atlanta converts client premium funds to personal use. Under O.C.G.A. § 33-23-35, the willful misuse of premium funds 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(c), the willful violation of the premium fiduciary rules is a misdemeanor — but it becomes a felony when the amounts involved exceed $1,000. Because premium funds are held in a fiduciary capacity, diverting them is treated as a trust violation, and the legislature calibrated the felony threshold at $1,000. A producer who even temporarily 'borrows' premium dollars risks crossing that line quickly in ordinary agency volume.
Why the other options are wrong
- B) The offense is not a flat felony; it starts as a misdemeanor and escalates to a felony only above the statutory amount.
- C) The felony threshold is not set at that lower figure; Georgia's statute uses $1,000 as the dividing line.
- D) The misuse of fiduciary premium funds is a criminal offense, not merely a civil or administrative matter.
Memory hook
Skim premiums and it's a misdemeanor — cross $1,000 and it's a felony.