A Georgia producer willfully converts premium funds he has collected from clients, and the amount converted exceeds $1,000. Under O.C.G.A. § 33-23-35(c), what is the nature of this offense?

Why C is correct

Under O.C.G.A. § 33-23-35(c), willfully withholding or appropriating premium money is a misdemeanor, but the offense rises to a felony when the amount exceeds $1,000. The producer also faces license discipline by the Insurance Commissioner, so the criminal exposure and the administrative consequences operate independently.

Why the other options are wrong

• A) A letter of reprimand may be one administrative outcome, but the willful conversion of premium funds carries criminal liability as well.
• B) The misdemeanor classification applies only where the amount does not exceed the statutory threshold; above it the offense is a felony.
• D) The insurer's internal response does not displace the criminal and licensing consequences enforced by the state.

Memory hook

Steal a little, misdemeanor; steal over a grand, felony.

Why D is correct

Under O.C.G.A. § 33-23-35(c), willful violation of the premium fiduciary rules is a misdemeanor, but it becomes a felony when the amounts involved exceed $1,000. Georgia producers must treat premium funds as trust money because misappropriation crosses from misdemeanor to felony at that threshold, in addition to Insurance Commissioner discipline.

Why the other options are wrong

• A) The felony threshold under O.C.G.A. § 33-23-35(c) is $1,000, not a lower figure.
• B) No $5,000 threshold exists in O.C.G.A. § 33-23-35(c); the felony line is $1,000.
• C) The threshold is $1,000 under O.C.G.A. § 33-23-35(c), not a three-figure amount.

Memory hook

Steal premiums over $1,000 and the misdemeanor becomes a felony — four figures, felony.

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 amount involved exceeds $1,000. The dollar threshold — not the producer's tenure or the insurer's reporting — controls the criminal classification.

Why the other options are wrong

• A) The $500 figure is not the Georgia threshold; the felony line in O.C.G.A. § 33-23-35(c) is $1,000.
• C) The licenseholder's length of experience has no bearing on the criminal classification of the violation.
• D) The statute keys the felony to the amount misappropriated, not to any insurer reporting deadline.

Memory hook

Steal over a grand in premiums — misdemeanor becomes felony.

Why B is correct

Under O.C.G.A. § 33-23-35, premiums are fiduciary funds, and their willful misuse is punishable as a misdemeanor; under § 33-23-35(c) the offense becomes a felony when the amount involved exceeds $1,000. This threshold makes even modest premium diversions criminal in Georgia, beyond the license discipline the Insurance Commissioner may impose.

Why the other options are wrong

• A) $500 is not the Georgia felony threshold for misuse of premium funds.
• C) $5,000 is a figure associated with other Georgia penalty schemes, not the felony threshold under § 33-23-35(c).
• D) $10,000 exceeds the statutory threshold; felony status attaches above $1,000.

Memory hook

Steal over a grand in premiums and the charge gets grand.