State RegulationsFL specificDifficulty 1/5
For purposes of premium accountability under Florida law, the insurer is considered to have received a premium when
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under Chapter 626, Florida Statutes, an agent acts as the insurer's agent when collecting premiums, so premium money received by the agent is treated as received by the insurer. This accountability rule protects insureds: an insurer cannot claim nonpayment because its own agent failed to forward funds that were entrusted to that agent.
Why the other options are wrong
- B) Bank clearance at the insurer is irrelevant; receipt by the authorized agent is the operative event.
- C) Where the agent happens to deposit the money does not change when the insurer is deemed to have received it.
- D) Policy issuance and delivery affect coverage timing, not the moment premium is constructively received.
Memory hook
Money in the agent's hand is money in the insurer's vault.