State RegulationsFL specificDifficulty 2/5
A Tampa life agent has already given an insured a $100 advertising calendar gift this calendar year and now wants to donate $100 to a charity that the insured supports. Under Fla. Stat. 626.9541(1)(m), what is the result?
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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 are exempt up to $100 per insured per calendar year, while charitable contributions are separately exempt up to $100 per person per year. Because the caps are independent, the agent's $100 gift and $100 charitable donation each fit within its own exemption, and neither triggers the DFS's unfair-trade-practice prohibitions on rebates and inducements.
Why the other options are wrong
- A) The two caps are separate; a $100 gift does not exhaust the charitable-contribution exemption.
- B) No insurer-approval mechanism appears in the statute; the exemption is self-executing within the dollar caps.
- C) The statute expressly exempts charitable contributions up to $100 per person per year, so a client-supported charity is not automatically an inducement.
Memory hook
Gift cap and charity cap: two separate $100s.