State RegulationsFL specificDifficulty 3/5
A Florida agent represents several unaffiliated insurers. Her bookkeeper asks whether premiums collected for the different insurers must each go into a different bank account. Which answer is correct under Florida's separate account requirement?
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, the separate account requirement separates fiduciary funds from the agent's personal and operating funds; it does not require one account per insurer. Premiums for multiple insurers may share a single designated trust account provided accurate records show what belongs to whom. The violation is commingling fiduciary money with the agent's own funds, not combining fiduciary funds with each other. In practice, one premium trust account with good bookkeeping satisfies the rule.
Why the other options are wrong
- A) The rule does not mandate per-insurer accounts; it mandates separation of fiduciary funds from the agent's own funds.
- B) The general operating account is exactly where fiduciary funds must not go; that is the commingling the rule prohibits.
- C) Depositing premiums to a personal account is the clearest form of commingling and a serious violation.
Memory hook
Separate from self, not from each other.