Florida Statutes, Rules, and Regulations Common to All Lines
An agent holds return premium owed to a former policyholder and treats it as agency working capital while deciding what to do. Why does this breach the statute?
Answer and explanation
Answer: C. Section 626.561(1) names return premiums among the trust funds an agent holds in a fiduciary capacity and requires the licensee to account for and pay them to the insurer, insured, or other person entitled to them in the regular course of business. Using them as working capital is inconsistent with that duty. The section does not assign them to the insurer pending file closure, permit retention against chargebacks, or convert them to unclaimed property on cancellation.Source: Fla. Stat. § 626.561 — 626.561(1), Accounting to the person entitled
More florida statutes, rules, and regulations common to all lines questions
- What do Florida's appointment certifications add to the licence the agent already holds?
- What does a Florida appointing entity accept about the appointee's conduct when it files an appointment?
- What does a Florida ceding insurer obtain from properly ceded reinsurance?
- What does a Florida certificate of authority establish for an insurer?
- What does the receiver take possession of when a Florida domestic insurer is ordered into liquidation?
- What must an applicant for a Florida insurance licence submit so the department can investigate qualifications?
589 Florida questions like this one.
Every answer explained, the ones you miss come back on a spaced schedule, and a plan built from your exam date.