State RegulationsFL specificDifficulty 1/5
Under Florida law, what is the maximum value of an advertising gift a life agent may give to a prospective insured in a calendar year without violating the rebate prohibitions?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Under Fla. Stat. 626.9541(1)(m), advertising gifts to an insured or prospective insured are exempt from the unfair trade practice prohibitions on rebates and inducements only up to $100 per calendar year. Once the value of gifts exceeds that cap, the item becomes an illegal inducement to purchase insurance that the DFS can treat as an unfair trade practice.
Why the other options are wrong
- A) $5,000 far exceeds the $100 annual advertising-gift exemption and would be an illegal inducement.
- B) $250 exceeds the $100-per-insured-per-calendar-year cap that the exemption allows.
- C) $25 is not the recognized life insurance advertising-gift limit; the exemption permits up to $100 per calendar year.
Memory hook
A hundred a year keeps the gift legal.