State RegulationsFL specificDifficulty 2/5
A newly licensed Florida agent writes nearly all of his business on his own real estate holdings and on companies owned by his relatives. Under Florida law, producing predominantly controlled business
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Under Chapter 626, Florida Statutes, and DFS licensing policy, an agent may not engage in the insurance business mainly to insure the agent's own interests. Writing predominantly controlled business - here, the agent's own holdings and family companies - is a licensing violation that DFS can punish with suspension or revocation, because the license exists to serve the insuring public.
Why the other options are wrong
- A) Premium payment is irrelevant; the problem is whose interests are being insured, not whether money changes hands.
- B) No grace period authorizes writing mainly one's own business; the license is for serving the public from the start.
- C) No consent - oral or written - legitimizes making controlled business the agent's principal production.
Memory hook
A license serves the public, not the agent's own property.