State RegulationsFL specificDifficulty 1/5
A Florida title insurance agent wants to send prospective customers a small promotional item to promote title insurance business. Under Fla. Stat. 626.9541(1)(m), what is the maximum value of an advertising gift allowed in connection with title insurance?
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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 are generally exempt from the unfair-trade-practice prohibitions only up to $100 per insured or prospective insured per calendar year, but title insurance is held to a stricter limit of $25. A title agent who gives promotional items worth more than $25 risks an unfair trade practice finding by the DFS. The $100 figure applies to ordinary life and health marketing, not title insurance.
Why the other options are wrong
- A) The $100 cap applies to ordinary advertising gifts for life and health lines, not to title insurance, which is capped at $25.
- C) No Florida authority permits advertising gifts valued at $5,000; that figure corresponds to outdated penalty amounts, not gift limits.
- D) $12,500 is a current unfair-trade-practice penalty ceiling, not an advertising-gift limit.
Memory hook
Title is tight: gifts top out at $25.