California Insurance Code & EthicsQuestion 59 of 215
Which form of inducement to purchase insurance is expressly prohibited under California's anti-rebating laws?
a.Giving the applicant a $200 gift card on top of the policy benefits as a hidden discount on premium
b.Providing an article of merchandise of nominal value clearly advertising the producer
c.Sharing commission with another licensed agent of record
d.Offering a quote based on accurate underwriting information
Explanation
Section 750 (anti-rebating) makes it unlawful to give any valuable consideration not specified in the policy as an inducement to insurance. A $200 cash-equivalent gift card is a classic rebate. Advertising specialties of nominal value, commission-sharing with another licensed agent, and accurate quoting are not rebates.
Law Reference: Cal. Ins. Code §750Practice all 215 questions free — no signup required.
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