State RegulationsGA specificDifficulty 2/5
During an examination of a Savannah, Georgia agency, the Insurance Department finds that a producer converted premium funds for personal use and the amount involved exceeds $1,000. How is this offense classified under Georgia law?
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under O.C.G.A. § 33-23-35(c), willful violation of the premium fiduciary rules is a misdemeanor, but the offense rises to a FELONY when the amounts involved exceed $1,000. A producer in Georgia who diverts more than $1,000 in premium funds therefore faces felony exposure, in addition to license suspension or revocation by the Insurance Commissioner.
Why the other options are wrong
- A) A misdemeanor applies only when the amounts do not exceed $1,000; above that threshold O.C.G.A. § 33-23-35(c) elevates the offense to a felony.
- B) Misappropriation of premium funds is a criminal matter under O.C.G.A. § 33-23-35(c), not merely a civil repayment issue handled between the producer and the insureds.
- D) There is no repayment safe harbor in O.C.G.A. § 33-23-35(c); once the amount exceeds $1,000 the willful conversion is a felony regardless of later restitution.
Memory hook
Steal premium over a grand in Georgia and it graduates from misdemeanor to felony.