State RegulationsFL specificDifficulty 1/5
Under Florida law, rebating by an agent occurs when the agent
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under Fla. Stat. 626.9541 (Chapter 626, Florida Statutes), rebating is offering any special inducement, rebate, or advantage not specified in the policy - such as returning part of the commission - to influence the purchase of insurance. Only narrow exemptions apply, such as advertising gifts within the $100 annual limit, and violations expose the agent to fines and license discipline.
Why the other options are wrong
- B) Charging the insurer's properly filed rates is lawful pricing, not an inducement to buy.
- C) Collecting and remitting premiums is an ordinary fiduciary duty, not a rebate.
- D) Equal treatment within a risk class is lawful - indeed required - under the unfair discrimination rules.
Memory hook
Anything extra under the table = rebate.