State RegulationsFL specificDifficulty 3/5
Which of the following is coercion under Florida law, rather than a lawful business practice?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under Fla. Stat. 626.9541 (Chapter 626), coercion includes using threats, intimidation, or improper pressure to steer insurance purchases. Expelling members for refusing to buy from a favored insurer is exactly that kind of forbidden pressure, while requiring insurance that protects a lender's collateral, offering genuine discounts, and modest advertising gifts are all lawful market practices.
Why the other options are wrong
- A) Requiring insurance that protects the loan collateral is a legitimate condition of the credit, not a threat to compel a purchase from a favored seller.
- B) A multi-policy discount actually available in the contract is lawful pricing, not intimidation.
- D) Advertising gifts within the $100 annual exemption are expressly permitted under Fla. Stat. 626.9541(1)(m).
Memory hook
A real condition is lawful; a threat to steer is coercion.