State RegulationsFL specificDifficulty 2/5
When a licensed Florida agent solicits and delivers a policy, whom does the agent legally represent?
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Answer & full 3-part explanation (select an option above, or peek)
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.