An agent who collects premiums and converts those premiums to his own personal use is guilty of:

When an agent collects premiums from policyholders and then uses that money for personal expenses instead of remitting it to the insurance company, this behavior constitutes embezzlement. Embezzlement is defined as the misappropriation of funds placed in one's trust or belonging to one's employer, which fits this scenario perfectly. The agent is taking money that belongs to the insurer, betraying the trust placed in them, and converting it for their own benefit.

Using the term fraud would imply a broader deceitful scheme that may not necessarily involve the direct handling of funds in the way embezzlement does. Negligence refers to failure to perform duties in a responsible manner, which does not accurately reflect the intentional misconduct in this scenario. Insubordination relates to a refusal to follow orders or report to a supervisor, which does not apply to the misappropriation of premiums. Thus, embezzlement is the most precise and appropriate classification of the agent's actions in this context.