When a licensed Florida agent solicits and delivers a policy, whom does the agent legally represent?

Why C is correct

Under Chapter 626, Florida Statutes, an agent is appointed by an insurer and transacts insurance on that insurer's behalf, so the agent legally represents the insurer when soliciting and effectuating coverage. The agent nevertheless owes consumers honest dealing under Florida's insurance laws and unfair trade practice rules.

Why the other options are wrong

• A) The applicant is the customer, but the agent's legal representative capacity runs to the appointing insurer.
• B) DFS regulates and licenses the agent but is not represented by the agent.
• D) The guaranty association is an insolvency mechanism and has no agency relationship with the agent.

Memory hook

The agent carries the insurer's flag.

Why B is correct

Under Chapter 626, Florida Statutes, a life agent acts as the insurer's representative in solicitation: the agent transacts insurance on behalf of the insurer that holds the agent's appointment. That is why the insurer is generally responsible for the agent's acts within the appointment's scope, and why the DFS regulates agents through appointments rather than through agency for consumers.

Why the other options are wrong

• A) The agent represents the insurer, not the applicant, even when giving advice during the sale.
• C) The DFS regulates and disciplines agents; it is not the party they represent.
• D) Agents serve their appointing insurers, not the public generally.

Memory hook

The agent wears the insurer's badge, not the customer's.