State RegulationsFL specificDifficulty 2/5
Which practice by a Florida agent is permitted in marketing an insurance policy?
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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), an agent may give advertising gifts valued within the statutory per-calendar-year limit (up to $100 per insured or prospective insured) without violating the rebate prohibitions. Paying part of the premium, returning commissions, or promising benefits not in the contract are classic rebating and misrepresentation offenses. The narrow gift exemption exists precisely to distinguish ordinary promotional courtesy from illegal inducements.
Why the other options are wrong
- A) Rebating part of the commission as an inducement is prohibited; it is not within the advertising gift exemption.
- C) Paying the insured's first premium out of pocket is a prohibited inducement, not a nominal advertising gift.
- D) Promising benefits the policy does not provide is misrepresentation, an unfair trade practice.
Memory hook
Small gift fine; premium payment or commission kickback is rebating.