State RegulationsFL specificDifficulty 1/5
During a market-conduct examination, a DFS examiner asks a Florida agent to produce records of the agent's insurance transactions. Under Florida law, the agent must:
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under Chapter 626, Florida Statutes, as enforced by the Department of Financial Services, licensees must keep records of their insurance transactions and make those records available to the Department upon request - for example, replacement-transaction records must be kept for at least 3 years under F.A.C. 69B-151.007. Failure to keep or produce records is itself a violation. In practice, examiners routinely request files during examinations of the agent's place of business.
Why the other options are wrong
- A) Destroying records after delivery defeats the recordkeeping requirement, which exists precisely so transactions can later be reviewed.
- B) The duty covers records of past transactions generally, not only policies currently in force.
- D) Agents who transact the business create their own records and must produce them; the insurer's records do not excuse the agent.
Memory hook
Keep the files, open them on request.