State RegulationsFL specificDifficulty 2/5
Under Florida law, who is responsible for paying the $60 appointment and renewal charge when an insurer appoints a licensed agent?
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 B is correct
Under Fla. Stat. 626.381(1),(4) and F.A.C. 69B-211.004, an agent's appointment runs on a 24-month cycle that expires the last day of the agent's birth month, and under Fla. Stat. 624.501(6)(7)(8) the $60 total ($42 appointment fee plus $12 state tax plus $6 county tax) is paid by the appointing entity. The insurer may not shift the cost to the licensee. Agents should never see appointment or renewal fees withheld from their commissions.
Why the other options are wrong
- A) Deducting appointment fees from the agent's commissions violates the rule that appointment and renewal fees are the appointor's responsibility.
- C) There is no cost-sharing provision; the entire appointment charge is the appointing insurer's obligation.
- D) The DFS does not bill licensees for appointment fees; the appointing entity pays them under Fla. Stat. 624.501(6)(7)(8).
Memory hook
Appointment fees = insurer's tab, never the agent's.