What term describes a producer who converts premiums for personal use?

The term that best encapsulates the situation where a producer converts premiums for personal use is "Breach of Fiduciary Duty." Producers have a fiduciary responsibility to act in the best interests of their clients, which includes properly handling and safeguarding the funds entrusted to them, such as insurance premiums. When a producer diverts these funds for their personal use, they violate this duty of care and trust. This breach can lead to significant legal and financial repercussions, not only for the producer but also for the insurance agency they represent.

While the other terms may relate to unethical or illegal behavior, they do not specifically address the breach of trust inherent in converting premiums for personal gain. Negligence refers to failure to exercise appropriate care, misrepresentation involves providing false information or misleading clients, and fraud encompasses deliberately deceptive actions. However, the core issue here is the breach of the fiduciary duty, which directly pertains to the misuse of the premium funds.