State RegulationsFL specificDifficulty 1/5
In Florida, when is an insurance agency license required?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Under Chapter 626, Florida Statutes, a business entity that transacts insurance, such as a corporation, partnership, or other firm operating as an agency in Florida, must hold an agency license, in addition to the individual agent licenses held by the natural persons who conduct insurance business through the entity.
Why the other options are wrong
- A) The agency license requirement applies to business done in Florida, not only out-of-state sales.
- B) Ownership by an insurer is not the trigger; any business entity transacting insurance needs the license.
- C) Individuals are licensed separately, but entities transacting insurance must also be licensed as agencies.
Memory hook
Business entity selling insurance = agency license too.