State RegulationsFL specificDifficulty 1/5
Under Florida law, when does a licensed agent act in a fiduciary capacity?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under Chapter 626, Florida Statutes, an agent acts in a fiduciary capacity whenever money or property - typically premiums - is entrusted to the agent in a position of trust on behalf of an insured or an insurer. In that capacity the agent must safeguard the funds, keep them fully accounted for, and deliver them to the party entitled to them.
Why the other options are wrong
- A) A temporary license limits who the holder may represent; it does not define when fiduciary capacity begins.
- C) Fiduciary duties attach to the handling of entrusted funds, regardless of how many insurers have appointed the agent.
- D) Placing advertising is an ordinary business activity; it does not involve holding another party's funds in trust.
Memory hook
Fiduciary = funds held in trust, not your own.