PLGeorgiamedium

Under Georgia law, premium funds collected by a producer from an insured are held in what capacity until remitted to the insurer?

Q: Under Georgia law, premium funds collected by a producer from an insured are held in what capacity until remitted to the insurer?

In a fiduciary capacity for the insurer or insured — O.C.G.A. § 33-23-35(b) requires that all premiums received, and return premiums due insureds, be accounted for in the licensee's fiduciary capacity, not be commingled with the licensee's personal funds, and be promptly paid to the insurer, insured, or agent entitled to them. Any violation is grounds for probation, suspension, or revocation of the license and for fines; a willful violation is a misdemeanor, or a felony if more than $1,000 is involved. Misappropriation is also a license ground under O.C.G.A. § 33-23-21.

AAs the producer's general business revenue

BAs a loan from the insured at the legal interest rate

CAs an unsecured deposit at the producer's discretion

In a fiduciary capacity for the insurer or insured

Why this is the answer

O.C.G.A. § 33-23-35(b) requires that all premiums received, and return premiums due insureds, be accounted for in the licensee's fiduciary capacity, not be commingled with the licensee's personal funds, and be promptly paid to the insurer, insured, or agent entitled to them. Any violation is grounds for probation, suspension, or revocation of the license and for fines; a willful violation is a misdemeanor, or a felony if more than $1,000 is involved. Misappropriation is also a license ground under O.C.G.A. § 33-23-21.

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