License, appointment and continuing education

Passing the exam gets you a license, and a license by itself authorizes nothing. Florida separates the credential from the authority to act, and most of the items on this topic turn on that gap — plus the deadlines, and the 48-month rule that quietly ends careers.

Questions and answers, explained

All 12 questions above, with the correct answer and why it is correct. Everything here is on license, appointment and continuing education.

1. A temporary license issued under s. 626.175, F.S., is:

   • Avalid for 90 days and renewable one time
   • Bvalid for a period not to exceed 6 months and nonrenewableCorrect
   • Cvalid for 12 months and renewable annually
   • Dvalid indefinitely until the holder passes the state examination

   Why: Section 626.175, F.S., authorizes a nonrenewable temporary license for a period not to exceed 6 months, issued to qualifying persons such as the personal representative or surviving next of kin of a deceased licensed agent, or a designee of an agent who is absent due to military service, illness, or disability. Option D is the closest distractor: passing the examination during the temporary period ends the temporary license and leads to issuance of a regular license, but it does not extend the 6-month outside limit. (Outline FL-I.F)

   Reference s. 626.175, F.S. — Outline FL-I.F

2. A licensed Florida life agent dies. Her personal representative obtains a temporary license so the agency's affairs can be wound up. Under s. 626.175, F.S., the temporary license terminates upon the earliest of which events?

   • AOnly when the probate court formally closes the estate of the deceased agent
   • BDisposition of the agency’s affairs, qualification for a regular license, or the 6-month expirationCorrect
   • CTransfer of all of the estate’s insurer appointments, but in no event sooner than 12 months after the death
   • DOnly an affirmative revocation by the department following a formal hearing

   Why: Section 626.175, F.S., terminates the temporary license when the disposition of the affairs of the deceased agent's agency is completed, when the temporary licensee qualifies for a regular license, or when the nonrenewable 6-month period runs out — whichever comes first; it also terminates if an absent or disabled agent resumes active conduct of the agency. Option A is the closest distractor, but the statute ties termination to the winding-up of the agency's insurance business and a hard 6-month outside limit, not to probate formalities. (Outline FL-I.F)

   Reference s. 626.175, F.S. — Outline FL-I.F

3. An insurer decides to terminate the appointment of one of its life agents. Under s. 626.471, F.S., the insurer must:

   • Agive the agent at least 60 days' advance written notice and file written notice with the department within 30 days after the terminationCorrect
   • Bgive the agent at least 30 days' advance written notice and file written notice with the department within 60 days after the termination
   • Cgive the agent no advance notice and notify the department only at the next birth-month renewal cycle
   • Dgive no notice at all, because appointments are terminable at will without any filing

   Why: Section 626.471, F.S., requires the appointing entity to give the agent at least 60 days' advance written notice of its intention to terminate the appointment, and to file written notice of the termination with the department within 30 days after terminating it, including a statement that the agent was notified and the reason for termination. Option B reverses the two periods, which is the most common error on this item. (Outline FL-I.F)

   Reference s. 626.471, F.S. — Outline FL-I.F

4. An individual holds a valid Florida 2-15 license but has had no appointment with any insurer writing that class of business for 48 consecutive months. Under the Florida Insurance Code, the consequence is that:

   • Aher license is automatically converted to nonresident status
   • Bshe may not be granted an appointment for that class of insurance until she qualifies as a first-time applicantCorrect
   • Cshe may be appointed at any time upon payment of a late filing fee
   • Dshe faces no consequence, because a Florida license does not expire

   Why: Under s. 626.431, F.S., an individual who fails to maintain an appointment with an appointing entity writing the class of business listed on the license during any 48-month period may not be granted an appointment for that class until qualifying as a first-time applicant, which generally means reapplying, meeting the prelicensing requirements, and retaking the examination. Option C is the closest distractor, but no late fee cures a full 48-month lapse. (Outline FL-I.F)

   Reference s. 626.431, F.S. — Outline FL-I.F

5. When an insurer files an appointment for an agent with the department, what does the appointing entity certify?

   • AThat the agent’s premium trust account has been independently audited this year
   • BThat an investigation was made and the licensee is of good moral character and fit for the businessCorrect
   • CThat the agent has already completed all continuing education required for the current compliance period
   • DThat the agent has agreed in writing not to write any controlled business at all

   Why: Section 626.451, F.S., requires the appointing entity to file the appointment, pay the applicable appointment fee and taxes, and certify that an investigation of the licensee has been made and that in its opinion and to the best of its knowledge and belief the licensee is of good moral character and reputation and is fit to engage in the insurance business. Every appointment is also subject to the prior issuance of the appropriate license. Option C is the closest distractor: continuing education compliance is monitored by the DFS against the licensee, not certified by the insurer at appointment. (Outline FL-I.F)

   Reference s. 626.451, F.S. — Outline FL-I.F

6. A newly examined applicant receives her Florida 2-15 license in the mail and immediately begins taking applications for an insurer that has not yet filed an appointment for her. Under the Florida Insurance Code, this conduct is:

   • Apermissible, because issuance of the license is the only authorization required
   • Bpermissible if the insurer later files an appointment with a retroactive effective date
   • Cprohibited, because a person must be both licensed by the department and appointed by an appropriate appointing entity before transacting insuranceCorrect
   • Dpermissible during a 30-day grace period following license issuance

   Why: Section 626.112(1), F.S., states that no person may be, act as, or advertise or hold himself or herself out to be an insurance agent unless currently licensed by the department AND appointed by an appropriate appointing entity; the license alone confers no authority to transact. The appointment must be filed by the insurer with the applicable fees and taxes under s. 626.451, F.S. Option D is the closest distractor, but the Code provides no post-issuance grace period for transacting without an appointment. (Outline FL-I.F)

   Reference ss. 626.112(1), 626.451, F.S. — Outline FL-I.F

7. An unlicensed full-time clerical employee of a Florida insurance agency, whose pay includes no commissions and is unrelated to production, may perform all of the following EXCEPT:

   • Aincidentally taking an insurance application from a customer who telephones the agency
   • Bquoting a premium in response to an incoming inquiry
   • Creceiving a premium payment on an incoming inquiry
   • Dinitiating contact with a prospect for the purpose of soliciting insuranceCorrect

   Why: Section 626.0428(1), F.S., provides that a salaried employee who devotes full time to clerical work, with the incidental taking of applications or quoting or receiving premiums on incoming inquiries in the agency office, is not deemed an agent or customer representative so long as compensation includes no commissions and is not related to the production of applications, insurance, or premiums. Initiating contact to solicit insurance falls outside that shelter and is the unlicensed transacting of insurance under s. 626.112(1), F.S. Option A is the closest distractor, but the statute expressly allows the incidental taking of an application on an inbound contact. (Outline FL-I.F)

   Reference ss. 626.0428(1), 626.112(1), F.S. — Outline FL-I.F

8. A Florida insurance agency wants to pay a local gym owner, who holds no insurance license, for sending members to the agency. Under s. 626.112(8), F.S., such an arrangement is permissible only if:

   • Athe fee is in no way dependent on whether the referral results in the purchase of an insurance productCorrect
   • Bthe gym owner discloses the payment to each member in writing
   • Cthe fee does not exceed 10 percent of the first-year commission
   • Dthe gym owner registers the referral program with the Office of Insurance Regulation

   Why: Section 626.112(8), F.S., prohibits paying any fee or other consideration to an unlicensed person, other than an insurance agency, for the referral of prospective purchasers when the payment is in any way dependent upon whether the referral results in the purchase of an insurance product; a flat, sale-independent referral fee is not prohibited. Option C is the closest distractor: the statute draws the line at contingency on the sale, not at a percentage cap, and a contingent fee would also implicate unlicensed transacting under s. 626.112(1), F.S. (Outline FL-I.G)

   Reference s. 626.112(8), F.S. — Outline FL-I.G

9. A Florida 2-15 agent who has held the license for 9 years and holds no professional designation must complete which continuing education requirement each 2-year compliance period?

   • AA 4-hour update course plus 20 elective hours (24 total)
   • BA 4-hour update course plus 16 elective hours (20 total)Correct
   • CA 4-hour update course plus 6 elective hours (10 total)
   • D24 elective hours with no mandatory update course

   Why: Section 626.2815, F.S., requires every licensee (except a title agent) to complete a 4-hour update course specific to the license held every 2 years, and it scales the electives with experience: 20 elective hours for licensees with less than 6 years, a minimum of 16 elective hours at 6 or more years, and a minimum of 6 elective hours at 25 years or more with a CLU, CPCU, or qualifying degree. Option A is the closest distractor and states the requirement for agents licensed fewer than 6 years. (Outline FL-I.F)

   Reference s. 626.2815, F.S. — Outline FL-I.F

10. A Florida life and health agent has been licensed for 27 years and holds an active CLU designation. Her biennial continuing education requirement is:

    • ANone; she is fully exempt from continuing education
    • BThe 4-hour update course plus 6 elective hoursCorrect
    • CThe 4-hour update course plus 16 elective hours
    • DThe 4-hour update course plus 20 elective hours

    Why: Under s. 626.2815, F.S., a licensee who has been licensed 25 years or more and who is a CLU or CPCU, or holds a bachelor's or higher degree in risk management or insurance with 18 or more insurance-related semester hours, must complete a minimum of only 6 elective hours every 2 years — but still must take the 4-hour update course. Option A is the closest distractor: long experience and a professional designation reduce the elective hours, but Florida grants no full exemption from the update course. (Outline FL-I.F)

    Reference s. 626.2815, F.S. — Outline FL-I.F

11. Which commission arrangement is permitted under the Florida Insurance Code?

    • ASplitting a commission with another agent who is licensed and appointed to write the same kind of insuranceCorrect
    • BPaying part of the commission to the unlicensed office manager who assembled the file
    • CPaying a finder's fee to an unlicensed neighbor that is contingent on the sale closing
    • DPaying a commission to an agent whose appointment for that class of business lapsed two years ago

    Why: Section 626.753, F.S., allows an agent to divide or share in commissions only with other agents appointed and licensed to write the same kind or kinds of insurance (or with a customer representative). Unlawfully dividing a commission is also a compulsory disciplinary ground under s. 626.611(1)(k), F.S., and s. 626.112(8), F.S., separately bars sale-contingent payments to unlicensed persons. Option B is the closest distractor: paying an unlicensed employee out of commissions converts clerical support into compensation related to the production of business, which s. 626.0428(1), F.S., does not shelter. Option D fails because appointment, not just licensure, is required. (Outline FL-I.G)

    Reference ss. 626.753, 626.611(1)(k), 626.112(8), 626.0428(1), F.S. — Outline FL-I.G

12. A Florida life and health agent who has been licensed for less than 6 years must complete which continuing education requirement every 2 years?

    • A14 hours, including 3 hours of ethics
    • BA 5-hour law and ethics update plus 19 elective hours
    • CA 4-hour update course specific to the license held, plus 20 hours of approved elective coursesCorrect
    • D28 hours, all of which must relate to the line of licensure

    Why: Section 626.2815, F.S., requires a mandatory 4-hour update course every 2 years specific to the license held — covering law updates, ethics, disciplinary trends, and suitability — plus elective hours that vary with experience: 20 elective hours (24 total) for licensees licensed less than 6 years, a minimum of 16 elective hours for those licensed 6 years or more, and 6 elective hours for those licensed 25 years or more who hold a CLU, CPCU, or qualifying insurance degree. The 5-hour law and ethics update in option B was the former requirement and is a common outdated-study-guide error. (Outline FL-I.F)

    Reference s. 626.2815, F.S. — Outline FL-I.F

Drill the whole domain

• Florida Statutes and Rules — Common to All Lines (13%)

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