State RegulationsFL specificDifficulty 2/5
An applicant for a Florida health policy is told by the agent that the insurer will issue the base policy only if she also purchases an optional accident rider she never asked for. Under Florida law, this practice 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, as enforced by the Department of Financial Services, sliding includes attempting to charge an applicant for an ancillary or additional coverage as a condition of the base policy, or representing that an extra charge or coverage is required when the applicant did not ask for it. Conditioning the base policy on the unwanted rider is the classic sliding fact pattern. Practically, ancillary products must be offered as genuinely optional with the applicant's affirmative consent.
Why the other options are wrong
- A) The rider's approval for sale does not permit making its purchase a condition of the base policy.
- B) Rebating involves returning part of a commission or premium as an inducement; here the agent extracts an extra charge rather than giving one back.
- D) Describing the rider accurately in the policy does not cure conditioning the base policy on its purchase.
Memory hook
Force the rider, commit sliding.