Florida Life and Health Insurance License Practice Test

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Prepare for the Florida Life and Health Insurance License Test. Study with flashcards and multiple choice questions, each with hints and explanations. Get ready for your certification exam with ease!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

Which of the following is NOT rebating?

Offering a premium discount
Returning a portion of the premium as a gift
Sharing commissions with licensed agents
Giving non-financial benefits for purchasing policies

The correct answer is: Sharing commissions with licensed agents

Rebating is the practice of giving something of value, such as gifts or discounts, to a potential or current insurance customer as an inducement to purchase or continue a policy. This practice is illegal because it undermines the principles of fair competition in the insurance industry. Option C, sharing commissions with licensed agents, is also considered rebating and is therefore NOT a permissible practice. Options A, B, and D are all examples of rebating because they involve offering discounts, returning premiums as gifts, or providing benefits that are not directly related to the insurance policy.