Illinois Life Producer State-designated Practice Exam

What charge does a producer face for knowingly misappropriating fiduciary money in the amount of $150 for a second offense?

1. Class 1 misdemeanor

2. Class 3 felony

3. Class 4 felony

4. Class A felony

The correct answer is: Class 4 felony

A producer who knowingly misappropriates fiduciary money faces serious implications under Illinois law. Specifically, for a second offense involving misappropriation of fiduciary funds, the charge is classified as a Class 4 felony. This classification reflects the seriousness of the crime, as fiduciary responsibilities are foundational to trust and ethical conduct in insurance and financial services. Misappropriation undermines these values, and Illinois law responds with penalties that escalate with repeated offenses. The nature of the crime and the amount involved also play significant roles in determining the severity of the charge. Understanding this context is essential for producers, as it emphasizes the critical importance of adhering to fiduciary duties and the potential legal ramifications of failing to do so.