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State RegulationsGA specificDifficulty 2/5

A Georgia producer willfully diverts premium funds for personal use. Under Georgia law, the willful misappropriation of premiums becomes a felony when the amount involved exceeds:

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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(c), willful violation of the premium fiduciary rules is a misdemeanor, but it rises to a felony when the amounts involved exceed $1,000. Beyond the criminal exposure, diverting premiums is also professional misconduct that supports discipline against the producer's license.

Why the other options are wrong

  • A) $500 is not Georgia's felony threshold for premium misappropriation.
  • C) $5,000 is far above the actual threshold.
  • D) $10,000 is the per-act administrative penalty figure under the cease and desist statute, not the felony threshold.

Memory hook

Over a grand, it's a felony.

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