State RegulationsAZ specificDifficulty 3/5
Which of the following is permitted under Arizona's rebating rules for life and disability insurance?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
A.R.S. 20-450 lists the exceptions to the rebating prohibition, including compensation paid to producers under the insurer's ordinary compensation arrangements. Returning premium, gift inducements over the ceilings, and off-policy discounts remain prohibited rebates under A.R.S. 20-449.
Why the other options are wrong
- B) Referral-driven premium returns are classic rebates because the advantage is not specified in the policy.
- C) A $300 gift card exceeds the $200 incentive ceiling, and prizes over $100 are prohibited outright.
- D) A special discount not specified in the policy is a special favor prohibited by A.R.S. 20-449.
Memory hook
Contracted commissions pass; off-policy favors are all rebates.