State RegulationsFL specificDifficulty 2/5
An agent is short of operating cash and transfers $100 from the agency trust account to her personal account, planning to repay it within the week. Under Florida law, this is
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Under Chapter 626, Florida Statutes, and DFS enforcement policy, fiduciary funds may never be used for the agent's own purposes. 'Borrowing' from the trust account is misappropriation the moment it happens - intent to repay, the small amount, and even actual repayment do not cure it, and it exposes the agent to license revocation and criminal prosecution.
Why the other options are wrong
- A) Repayment does not retroactively legalize the conversion; the breach occurs the moment the funds are taken.
- B) There is no de minimis exception; fiduciary duties apply to every dollar held in trust.
- C) Even the insurer's written consent could not authorize using entrusted funds for the agent's personal needs.
Memory hook
Borrowing from trust is stealing with a schedule.