State RegulationsFL specificDifficulty 2/5
An agent adds a charge for a supplementary association membership to a health policy application and tells the applicant that Florida law requires the membership. Both statements are untrue, and the applicant never agreed to the charge. This practice is
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Under Fla. Stat. 626.9541, sliding occurs when an agent includes a charge for a supplementary product or service in a sale without the applicant's informed consent, or represents that a charge or coverage is required by law when it is not. Adding an undisclosed membership fee and falsely claiming a legal mandate are the two hallmarks of sliding, an unfair trade practice in Florida.
Why the other options are wrong
- A) Rebating involves giving value back to the insured as an inducement; here an extra charge was imposed instead.
- B) Twisting uses misrepresentation to induce replacement of an existing policy; no replacement occurred here.
- C) Churning involves using an existing policy's values to buy additional coverage; no existing policy is involved.
Memory hook
Slip a charge into the sale = sliding.