State RegulationsGA specificDifficulty 1/5
How does a Georgia producer hold premium funds collected from applicants?
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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 collected by a licensee are held in a fiduciary capacity and may not be commingled with the licensee's personal or business funds. The money belongs to the transaction, not to the producer, and treating it otherwise can trigger discipline and criminal exposure.
Why the other options are wrong
- A) Fiduciary status means the funds are not the producer's personal property at any point.
- C) Fiduciary holding is not a loan from the insurer.
- D) The funds are not shared property; they are held in trust for the transaction.
Memory hook
Premiums ride in trust, never in the producer's pocket.