State RegulationsFL specificDifficulty 2/5
A Florida agent takes a completed life insurance application from a client. What must the agent do with it?
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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 who receives a completed application must promptly transmit it to the insurer, because the insurer - not the agent - decides whether to accept the risk. Sitting on applications can delay or destroy coverage and exposes the agent to discipline by the DFS; the DFS does not pre-approve applications, and agents have no authority to accept or decline risks.
Why the other options are wrong
- A) Applications are time-sensitive offers to the insurer; holding them for convenience is a breach of the agent's duty.
- B) The agent's duty is proactive transmission; waiting for a request from the insurer is not permitted.
- D) The DFS does not pre-approve applications; the underwriting decision belongs to the insurer.
Memory hook
Applications move - the agent forwards, the insurer decides.