State RegulationsFL specificDifficulty 2/5
A Florida agent tells a business owner, 'Buy the group health plan through me and I will apply 10% of my commission toward your first renewal premium.' The owner gladly agrees. This arrangement is
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under Fla. Stat. 626.9541 (Chapter 626), applying part of an agent's commission to a customer's premium is a rebate - an inducement not specified in the policy. Consent does not legalize it, and neither does the source of the funds: the rule exists so that buyers choose policies on their merits rather than on side payments that discriminate among customers.
Why the other options are wrong
- A) Mutual consent is not a defense; the statute prohibits the inducement itself.
- B) The source of the funds is irrelevant - a rebate is unlawful even when funded entirely from the agent's own commission.
- D) No existing policy was displaced through misrepresentation, so twisting is not the issue.
Memory hook
Consent cannot launder a rebate.