State RegulationsFL specificDifficulty 2/5
A corporation wants to open an office in Tampa that will employ licensed agents to sell life and health insurance. Which statement is true under Florida law?
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under Chapter 626, Florida Statutes, a business entity - corporation, LLC, or partnership - operating as an insurance agency must hold its own agency license, while each natural person who sells insurance through the agency must individually hold an agent license. An individual's examination pass licenses only that person; it does not flow to the firm. In practice, the DFS requires both levels of licensure before the firm may lawfully operate as an agency.
Why the other options are wrong
- B) An individual's examination success licenses that person only; the business entity must separately apply for and hold an agency license.
- C) All business entities operating as agencies - corporations, partnerships, LLCs, and sole proprietorships alike - must satisfy agency licensing requirements.
- D) Selling through employed agents still constitutes transacting insurance by the entity; no client-meeting exemption exists.
Memory hook
Agency license for the firm, agent license for the person.