State RegulationsGA specificDifficulty 1/5
How must a Georgia producer treat the premium dollars collected from applicants?
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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, premiums collected by a producer are held in a fiduciary capacity for the insurer, and commingling them with the producer's personal or business funds is prohibited. Misusing premium money is the classic path to license discipline and criminal exposure under the same statute, so Georgia producers keep premium accounts strictly separate.
Why the other options are wrong
- A) The money never becomes the producer's personal income; it is held in trust for the insurer.
- B) Premiums are fiduciary funds, not advances against future commissions.
- C) Signing an application does not unlock the money; the fiduciary duty continues.
Memory hook
Premiums are trust money — never mix them with yours.