State RegulationsFL specificDifficulty 2/5
During one calendar year, a Florida agent gives a prospective insured an advertising gift valued at $100 and also makes a charitable contribution of $100 in that prospect's name. How are these items treated under Fla. Stat. 626.9541(1)(m)?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under Fla. Stat. 626.9541(1)(m), advertising gifts to an insured or prospective insured are exempt up to $100 per calendar year, and charitable contributions are separately exempt up to $100 per person per year. Because each item is within its own limit, neither constitutes an unlawful rebate or inducement; only amounts beyond those caps would be unfair trade practices.
Why the other options are wrong
- A) The statute deliberately carves advertising gifts and charitable donations out of the rebate prohibitions, so items within the limits are lawful.
- C) Charitable contributions up to $100 per person per year are expressly exempt alongside advertising gifts.
- D) The two exemptions are independent; the statute never forces an either-or choice between them.
Memory hook
Two $100 buckets: one for gifts, one for charity.