Florida Statutes, Rules, and Regulations Common to All Lines

An agency places business with an insurer for which it holds no appointment and which is not a surplus lines insurer. What does Florida law require of the funds belonging to that insurer?

Answer and explanation
Answer: A. Section 626.561(1) requires an agent or agency to keep funds belonging to each insurer for which the agent is not appointed, other than a surplus lines insurer, in a separate account so that the department or office can properly audit them. The statute does not route the funds to the Department, does not permit commingling in exchange for a bond, and does not require an insurer-held interest-bearing escrow.Source: Fla. Stat. § 626.561 — 626.561(1), Separate account

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