Which form of inducement to purchase insurance is expressly prohibited under California's anti-rebating laws?
a.Providing an article of merchandise of nominal value clearly advertising the producer
b.Offering a quote based on accurate underwriting information
c.Giving the applicant a $200 gift card on top of the policy benefits as a hidden discount on premium
d.Sharing commission with another licensed agent of record
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 §750This topic, taught in full in the California Property & Casualty Broker-Agent guide. California Property & Casualty Broker-Agent Study Guide — 2026 Edition — PDF + EPUB, $24.99 · 14-day refund →
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