State RegulationsFL specificDifficulty 1/5
Florida's separate account requirement means that premium and other funds held by an agent in a fiduciary capacity must be
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under Chapter 626, Florida Statutes, and DFS fiduciary rules, an agent who holds premium or other fiduciary funds must keep them in a separate account apart from the agent's own personal and business funds. Segregation keeps entrusted money identifiable at all times and protects insureds and insurers if the agency fails or the agent's personal finances collapse.
Why the other options are wrong
- B) DFS does not hold agents' premium funds; the duty to segregate rests on the agent personally.
- C) No de minimis amount excuses commingling; even a small balance of fiduciary funds must be segregated.
- D) The separate-account duty applies to any agent holding fiduciary funds, no matter how many appointments exist.
Memory hook
Fiduciary funds live in their own house.