State RegulationsAZ specificDifficulty 1/5
An Arizona life producer gives a client a thank-you gift worth $150 for completing a feedback survey about the producer's service. Within any 12-month period, how is this treated under A.R.S. 20-449?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
A.R.S. 20-449 permits an incentive or feedback reward of not more than $200 in value in any 12-month period, so a $150 survey thank-you gift falls within the statutory ceiling and is not unlawful rebating.
Why the other options are wrong
- A) The statute expressly allows an incentive or feedback reward up to the $200 ceiling within a 12-month period.
- B) Policy dividends are one exception to rebating, but small feedback rewards are separately permitted without any dividend.
- D) Value limits always matter: prizes over $100 are prohibited, and rewards above $200 in a 12-month period become rebates.
Memory hook
$200 feedback cap, $100 prize cap — 150 fits, 250 does not.