What is the rule regarding promotional items given to customers?

• A. An insurer or agent may give a promotional advertising or educational item as long as its value does not exceed $25.
• B. Any promotional item is allowed regardless of value.
• C. Cash gifts are allowed up to $50.
• D. Items must be provided only to new customers.

Answer: (A)

Promotional items given to customers are limited by value: a promotional advertising or educational item may be given if its value does not exceed $25. This cap helps prevent undue inducement while still allowing small, legitimate giveaways that promote the agency or its services. Cash gifts aren’t allowed, and the rule applies to promotions given to customers in general, not just to new customers. So the correct rule is that an insurer or agent may give a promotional advertising or educational item as long as its value does not exceed $25.