State RegulationsFL specificDifficulty 1/5
A Florida agent's compensation for the sale of an insurance policy properly comes from
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under Chapter 626, Florida Statutes, agents are compensated by the insurers they represent, pursuant to the commission arrangement in place under the appointment. The agent may not collect compensation directly from the insured on top of that arrangement, and neither DFS nor the guaranty association plays any role in paying agent commissions.
Why the other options are wrong
- A) Charging the applicant a separate, privately negotiated fee for a commissioned sale is an unfair practice.
- C) DFS licenses and disciplines agents; it neither sets nor pays commissions.
- D) The guaranty association exists to pay covered claims of insolvent insurers, never agent compensation.
Memory hook
The insurer pays the agent - never the customer twice.