A Georgia producer keeps customer premiums in the agency's general operating checking account, paying carrier remittances from the same account on a monthly cycle. Under Georgia fiduciary rules, what is the most accurate evaluation of this practice?

Why this is the answer

O.C.G.A. § 33-23-35(b) requires premiums received, and return premiums due insureds, to be accounted for in the licensee's fiduciary capacity and not commingled with the licensee's own funds. Running premium money through the agency's general operating account mixes it with the agency's own money whether or not the carrier is ultimately paid on time. The statute does not require a separate account for each insurer, but the funds held for each principal must be reasonably ascertainable from the agency's books. Violations support probation, suspension, revocation, and fines under § 33-23-35(c) and license action under § 33-23-21.