If an insurance agent embezzles funds received from insurance transactions, what legal consequence do they face?

If an insurance agent embezzles funds received from insurance transactions, they face serious legal consequences, which include being charged with a felony. Embezzlement is categorized as a crime involving theft or misappropriation of funds, particularly when it involves a breach of trust. As a felony, the penalties can be significant, including substantial fines and potentially imprisonment. This classification reflects the severity of the crime, as it undermines the trust placed in insurance professionals and can have serious repercussions for both clients and the insurance industry as a whole. The laws surrounding embezzlement are designed to deter such fraudulent behavior and protect consumers, thus ensuring that insurance agents adhere to high ethical standards in managing funds entrusted to them.