Under Florida law, what is the most an agent may spend on advertising gifts for any one insured or prospective insured in a calendar year?

Why B is correct

Under Fla. Stat. 626.9541(1)(m), advertising gifts and charitable donations are exempt from the rebate-and-inducement prohibitions only up to $100 per insured or prospective insured per calendar year (and, for charitable contributions, up to $100 per person per year). The $25 figure is the limit specific to title insurance. Exceeding the allowance turns a marketing courtesy into an unlawful inducement.

Why the other options are wrong

• A) $25 is the advertising gift limit for title insurance, not for life and health lines.
• C) $250 is the DFS penalty associated with uncertified continuing education, not the gift allowance.
• D) $12,500 is the ceiling on a nonwillful unfair trade practice penalty, far beyond any gift allowance.

Memory hook

A hundred dollars a year per person buys goodwill - not more.

Why D is correct

Under Fla. Stat. 626.9541(1)(m), advertising gifts to an insured or prospective insured are exempt from the unfair trade practice prohibitions on rebates and inducements only up to $100 per calendar year. Once the value of gifts exceeds that cap, the item becomes an illegal inducement to purchase insurance that the DFS can treat as an unfair trade practice.

Why the other options are wrong

• A) $5,000 far exceeds the $100 annual advertising-gift exemption and would be an illegal inducement.
• B) $250 exceeds the $100-per-insured-per-calendar-year cap that the exemption allows.
• C) $25 is not the recognized life insurance advertising-gift limit; the exemption permits up to $100 per calendar year.

Memory hook

A hundred a year keeps the gift legal.