State RegulationsGA specificDifficulty 2/5
A Georgia producer willfully converts premium funds he has collected from clients, and the amount converted exceeds $1,000. Under O.C.G.A. § 33-23-35(c), what is the nature of this offense?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under O.C.G.A. § 33-23-35(c), willfully withholding or appropriating premium money is a misdemeanor, but the offense rises to a felony when the amount exceeds $1,000. The producer also faces license discipline by the Insurance Commissioner, so the criminal exposure and the administrative consequences operate independently.
Why the other options are wrong
- A) A letter of reprimand may be one administrative outcome, but the willful conversion of premium funds carries criminal liability as well.
- B) The misdemeanor classification applies only where the amount does not exceed the statutory threshold; above it the offense is a felony.
- D) The insurer's internal response does not displace the criminal and licensing consequences enforced by the state.
Memory hook
Steal a little, misdemeanor; steal over a grand, felony.