State RegulationsFL specificDifficulty 2/5
How does a Florida insurance agent's appointment renewal cycle work, and who pays the renewal fee?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under Fla. Stat. 626.381(1) and (4), an agent's appointment runs on a 24-month cycle that expires on the last day of the licensee's birth month for natural persons. Renewal and late fees are the responsibility of the appointing entity and may never be passed on to the licensee, as reflected in F.A.C. 69B-211.004.
Why the other options are wrong
- A) The appointment cycle is 24 months keyed to the licensee's birth month, not a 12-month cycle on the issue date, and the licensee never pays the renewal fee.
- C) The appointing entity, not the licensee, pays appointment renewal fees; deducting them from the licensee's commissions is improper.
- D) Appointments are on a 24-month cycle, not a 6-month one, and the licensee pays nothing toward the renewal fee.
Memory hook
Birth-month renewal every 2 years - insurer pays.