State RegulationsFL specificDifficulty 2/5
A Florida agent's appointment with Insurer A ends when she begins representing Insurer B, an unaffiliated company. What happens to the policies she sold while appointed by Insurer A?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under Chapter 626, Florida Statutes, an appointment governs which insurer the agent may transact for going forward; it does not undo contracts already delivered. Policies issued by Insurer A remain in force with Insurer A, and the agent simply may no longer transact new business for A without a current appointment from it.
Why the other options are wrong
- A) Ending an appointment affects the agent's authority, not the validity of issued contracts.
- B) Contracts never transfer between unaffiliated insurers because an agent changes companies.
- D) FLAHIGA becomes involved only when a member insurer is liquidated, not when an appointment ends.
Memory hook
Appointments end; policies live on.