State RegulationsFL specificDifficulty 1/5
To attract clients, a Florida agent plans to give every prospective insured who attends her seminar a $250 gift card. Under Fla. Stat. 626.9541(1)(m), this is
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under Fla. Stat. 626.9541(1)(m), advertising gifts and charitable donations are exempt from the rebate prohibitions only up to $100 per insured or prospective insured per calendar year. A $250 gift card exceeds that ceiling, making it an unlawful rebate or inducement rather than an exempt advertising expense, regardless of any reporting or the attendee's status.
Why the other options are wrong
- A) The exemption is capped - gifts above $100 per person per calendar year lose their protected status.
- C) Reporting the gift to the OIR does not legalize an over-limit inducement; the statutory ceiling controls.
- D) Prospective insureds are expressly within the $100 annual limit, so their pre-application status does not help.
Memory hook
$100 a year keeps the gift lawful.