State RegulationsFL specificDifficulty 3/5
A corporation holds a valid Florida insurance agency license. Which statement about its personnel is correct?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under Chapter 626, Florida Statutes, an agency license authorizes the business entity to transact insurance, but the natural persons who actually solicit, negotiate, and effectuate coverage for the agency must each hold an individual agent license. The entity license and the personal licenses operate together, which is why both are checked in DFS licensing records.
Why the other options are wrong
- B) The entity license covers the corporation, not every employee; unlicensed staff cannot transact insurance for it.
- C) Shareholders own the company but need no personal licenses unless they personally transact insurance.
- D) The agency license complements rather than replaces individual licenses for those acting as agents.
Memory hook
Entity license plus personal licenses - both required.