State RegulationsFL specificDifficulty 3/5
Which statement about a Florida agent's fiduciary account is correct?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under Chapter 626, Florida Statutes, funds an agent holds in a fiduciary capacity - premiums, return premiums, and claim proceeds - must be kept in a separate account distinct from the agent's personal and operating funds. That segregation is what makes faithful accounting possible and gives DFS a clean audit trail when it examines an agency's trust practices.
Why the other options are wrong
- A) A label does not cure commingling; personal funds may never be mixed with entrusted funds.
- C) OIR regulates insurers and does not host agent accounts; the agent maintains the account at a financial institution.
- D) Every licensee who holds fiduciary funds must comply, not just holders of temporary licenses.
Memory hook
Separate account = clean books = clean license.