Final answer:
An insurance agent who fails to remit premiums to the insurer may be guilty of embezzlement, which involves the misappropriation of funds entrusted to their care for personal use. It is a type of corporate crime and a violation of trust.
Step-by-step explanation:
If an agent fails to promptly remit the premiums collected from the insured to the insurer, the agent may be found guilty of embezzlement. Embezzlement is a form of white-collar crime where an individual, entrusted with the management or monitoring of someone else's money or property, misappropriates these assets for personal use. This is in contrast to fraud, which involves deception; negligence, which refers to a failure to exercise the appropriate level of care; and conspiracy, which involves an agreement between two or more parties to commit a crime. In the context of an insurance agent not remitting the premiums, embezzlement directly pertains to the wrongful appropriation of funds that the agent had the duty to handle on behalf of another party, the insurer.
By comparison, as referenced by the study material, corporate crime like embezzlement typically occurs within or on behalf of a corporation or organization. It is considered a serious offense because it violates the trust placed in the individual by the corporation and the stakeholders.