AgencyIntermediateAlaska Exam

In Alaska, an agent's duty to the client 'to account' for all money or property received includes:

AKeeping detailed accounting records only for transactions over $10,000
BPromptly depositing client funds in the trust account, maintaining accurate records, and providing client statements upon requestCorrect
CProviding monthly profit and loss statements for the client's investments, which is broadly consistent with standard practice statewide
DAccounting for the agent's own expenses in the transaction

Why Promptly depositing client funds in the trust account, maintaining accurate records, and providing client statements upon request Is Correct

Answer B: Promptly depositing client funds in the trust account, maintaining accurate records, and providing client statements upon request

The duty of accounting requires the agent to: promptly deposit all received funds in the appropriate trust account, maintain accurate, verifiable records of all funds received and disbursed, and be able to account for client funds at any time upon request. This protects clients from unauthorized use of their money.

Exam Tip: Agency

Agency questions are among the most tested on the exam. Focus on the difference between client and customer, and memorize the fiduciary duties (OLD CAR). Watch for questions that try to blur the line between a general agent and a special agent.

Key Agency Terms in This Question

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