State RegulationsFL specificDifficulty 1/5
Which statement correctly describes the advertising-gift exemption in Fla. Stat. 626.9541(1)(m)?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under Fla. Stat. 626.9541(1)(m), the unfair-trade-practice prohibitions on rebates and inducements do not apply to advertising gifts worth no more than $100 per insured or prospective insured per calendar year, or to charitable contributions up to $100 per person per year. The exemption is deliberately narrow: an agent anywhere in Florida who exceeds the $100 annual cap has committed an unfair trade practice the DFS can pursue.
Why the other options are wrong
- B) The statute sets a hard $100 per insured per calendar year ceiling; disclosure to the insurer does not lift the cap.
- C) The exemption expressly covers prospective insureds as well as current insureds, so gifts to prospects are within it.
- D) Charitable contributions are exempt only up to $100 per person per year, not $5,000.
Memory hook
$100 a year per person keeps the gift legal.