State RegulationsGA specificDifficulty 1/5
Under Georgia law, willful misuse of premium funds is a misdemeanor, but it becomes a felony when the amount involved exceeds which threshold?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under O.C.G.A. § 33-23-35, premiums are fiduciary funds, and their willful misuse is punishable as a misdemeanor; under § 33-23-35(c) the offense becomes a felony when the amount involved exceeds $1,000. This threshold makes even modest premium diversions criminal in Georgia, beyond the license discipline the Insurance Commissioner may impose.
Why the other options are wrong
- A) $500 is not the Georgia felony threshold for misuse of premium funds.
- C) $5,000 is a figure associated with other Georgia penalty schemes, not the felony threshold under § 33-23-35(c).
- D) $10,000 exceeds the statutory threshold; felony status attaches above $1,000.
Memory hook
Steal over a grand in premiums and the charge gets grand.