State RegulationsFL specificDifficulty 2/5
A Florida insurance agency operates an office with several licensed agents handling client business. What requirement applies to the agency's operation?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under Florida licensing law administered by the Department of Financial Services, an insurance agency must operate under a licensed agent in charge who is responsible for the agency's compliance with insurance law, including supervision of the insurance transactions the agency conducts. This ensures an identifiable, accountable licensee stands behind the entity's business.
Why the other options are wrong
- A) Insurer ownership is not required; independent agencies operate without any insurer owning them.
- C) Client co-signature of advertisements has no basis in Florida law.
- D) Ownership travel does not suspend an agency's operations; supervision requirements are met through the agent in charge.
Memory hook
Every agency needs an agent in charge.