General Insurance
A producer collects a premium with an application and holds it for three weeks before remitting it. What duty has been breached?
Answer and explanation
Answer: C. Premiums belong to the insurer and to the applicant, not to the producer, so they must be accounted for promptly and kept apart from personal funds. Illustrations, compensation disclosure and authority to collect are separate obligations.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, responsibilities to applicant and insured
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