Michigan's anti-rebating law contains a narrow exception allowing an insurer to give merchandise to each life insurance applicant as an inducement to purchase. What is the maximum invoice value of that merchandise?

Why D is correct

M.C.L. 500.2024 generally prohibits rebating anything of value not specified in the contract, but M.C.L. 500.2024a creates an exception for merchandise with an invoice value not exceeding $5.00 given to each life insurance applicant. Giving merchandise above that value as an inducement is an unlawful rebate under the Michigan Insurance Code.

Why the other options are wrong

• A) $10.00 is the producer license application fee under M.C.L. 500.240, not the merchandise-rebate ceiling.
• B) $100.00 is far above the statutory ceiling and reflects a larger out-of-state exception; Michigan's cap is much lower.
• C) $41.00 is the per-attempt Michigan licensing examination fee charged by DIFS's contracted testing vendor, unrelated to the rebate exception.

Memory hook

Five-dollar swag is fine; six dollars is a rebate.