Florida Law on Referrals

[Ins.rob]

Just had a question on what the law for Florida is about gifts for referrals. I was looking to do a referral program like this.
Is this legal in the state of FL? and where I can find the laws on this?

$10 visa card per referral
$50 visa card for the winner each month who referred the most
$500 visa card for who referred the most for the year

new to the business. Thanks for the help

 

[Tkruger]

Looking to lose your license quick I see...

https://www.myfloridacfo.com/division/Agents/Newsletter/Archive/2013/Nov/ComplianceCorner.htm

Google is your friend.

Welcome to the forum

 

[Ins.rob]

This is right from the site:
A gift, gift card, or referral fee in any amount may be given by the licensee for a referral as long as the giving of the gift, gift card or referral fee is not conditioned upon the referral transforming into the sale of an insurance product or service.

Now if I state this directly what would be the problem as long as I am clear that it is for the referral and not the sale?

Just trying to set up a way to generate more referrals

Thanks for the help!

 

[Tkruger]

The purpose of an advertising gift is to promote the licensee's business by placing the name of the licensee or their business name in front of customers or prospects by giving away articles of merchandise with their name on it without any conditions having to be met. Examples would be calendars, golf balls, coffee mugs, pens, shirts etc. as long as the value of the individual gift does not exceed $25.00. A gift card is not considered to be an article of merchandise and therefore not an acceptable advertising gift even if it does contain the licensee's name or business name on it. However, a gift meeting the definition of an advertising gift cannot be used to induce someone to provide detailed financial and other personal information.

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Referral Fees
A gift, gift card, or referral fee in any amount may be given by the licensee for a referral as long as the giving of the gift, gift card or referral fee is not conditioned upon the referral transforming into the sale of an insurance product or service.
[See Section 626.112(8), Florida Statutes]

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Basically what I was trying to convey is a $ 25 limit. What you are suggesting based off the referral fee could be tied back to the advertising gift outlined in your original post.

 

[Ins.rob]

So if I keep it to $25 max its all good?
The wording is very tricky because it also says in any amount

 

[Tkruger]

So if I keep it to $25 max its all good?
The wording is very tricky because it also says in any amount

When in doubt consult legal counsel. I am not legal counsel. Nor do I have a program in place to do what you are attempting to do.

Just trying to point out resources.

Best of luck.

 

[Ins.rob]

thanks for the help I do appreciate the link !