In Florida, when is an insurance agency license required?

Why D is correct

Under Chapter 626, Florida Statutes, a business entity that transacts insurance, such as a corporation, partnership, or other firm operating as an agency in Florida, must hold an agency license, in addition to the individual agent licenses held by the natural persons who conduct insurance business through the entity.

Why the other options are wrong

• A) The agency license requirement applies to business done in Florida, not only out-of-state sales.
• B) Ownership by an insurer is not the trigger; any business entity transacting insurance needs the license.
• C) Individuals are licensed separately, but entities transacting insurance must also be licensed as agencies.

Memory hook

Business entity selling insurance = agency license too.

Why A is correct

Under Chapter 626, Florida Statutes, a business entity - corporation, LLC, or partnership - operating as an insurance agency must hold its own agency license, while each natural person who sells insurance through the agency must individually hold an agent license. An individual's examination pass licenses only that person; it does not flow to the firm. In practice, the DFS requires both levels of licensure before the firm may lawfully operate as an agency.

Why the other options are wrong

• B) An individual's examination success licenses that person only; the business entity must separately apply for and hold an agency license.
• C) All business entities operating as agencies - corporations, partnerships, LLCs, and sole proprietorships alike - must satisfy agency licensing requirements.
• D) Selling through employed agents still constitutes transacting insurance by the entity; no client-meeting exemption exists.

Memory hook

Agency license for the firm, agent license for the person.