Florida Statutes, Rules, and Regulations Common to All Lines

A producer places a Florida client with an unauthorized insurer, knowing the placement violated section 626.901, and the insurer later fails to pay a claim. What is the producer's exposure?

Answer and explanation
Answer: B. Section 626.901(2) makes a person who solicited, negotiated, took application for, or effectuated the contract, knowing or having reason to know it violated the section, liable to the insured for the full amount of the claim or loss not paid. The exposure is the whole unpaid claim rather than a fine, a commission, or a sum conditioned on proof of dishonesty.Source: Fla. Stat. § 626.901 — 626.901(2), Personal liability

On the exam in: Florida · difficulty: hard

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