State RegulationsGA specificDifficulty 3/5
A Georgia producer has been holding collected premium payments in the producer's personal checking account and willfully converts premium funds belonging to customers. At what dollar threshold does this fiduciary violation become a felony rather than a misdemeanor?
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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 and may not be commingled with personal funds; a willful violation is a misdemeanor, but it becomes a felony when the amounts involved exceed $1,000. Producers must keep premium funds segregated and remit them promptly, because even a short-term personal 'borrowing' can cross the felony line.
Why the other options are wrong
- A) $100 is far below the felony threshold; under O.C.G.A. § 33-23-35(c) the felony line is $1,000.
- B) The threshold is higher than $500; under O.C.G.A. § 33-23-35(c) a willful conversion exceeding $1,000 is a felony.
- C) $5,000 is beyond the actual threshold; felony treatment already applies above $1,000 under O.C.G.A. § 33-23-35(c).
Memory hook
Steal a grand in premium and it stops being a misdemeanor — $1,000 is the felony line.