State RegulationsFL specificDifficulty 1/5
A Florida agent sponsors tables at charity events where prospective clients gather. What does Florida law allow for charitable contributions used in connection with insurance marketing?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Under Fla. Stat. 626.9541(1)(m), charitable donations used in connection with insurance marketing are exempt from the rebate prohibitions so long as they do not exceed $100 per person per year. This exemption lets agents support community and charitable activity without those contributions being treated as improper inducements to purchase insurance. Larger contributions tied to sales would constitute rebating, an unfair trade practice under Chapter 626, Florida Statutes.
Why the other options are wrong
- A) $25 is the title insurance advertising gift figure, not the charitable contribution allowance.
- B) $50 is not the applicable figure; the exemption permits charitable contributions up to $100 per person per year.
- C) Charitable contributions are not unlimited; like advertising gifts, they are capped by statute to prevent disguised rebating.
Memory hook
Charity too is capped at a C-note per person.