A P&C broker collects $5,000 in premiums from a client to bind a homeowners policy with an admitted insurer. Under the fiduciary duty statute, the broker must:

Explanation

Section 1733 requires a licensee who handles premiums to hold them in a fiduciary capacity and not commingle them with personal or business operating funds. Premiums are trust funds that must be remitted to the insurer net of commission or returned to the insured. Choices (b), (c), and (d) are all commingling or conversion violations.