Which statement is true regarding the penalty for rebating?

• A. Between $60 and $200.
• B. Between $1,000 and $5,000.
• C. There is no penalty.
• D. Penalties are determined by the insurer.

Answer: (A)

Rebating is offering something of value to influence the purchase of insurance, which is illegal. The consequence is a civil penalty set by statute, not left to the insurer. In this jurisdiction, the law specifies a fine range of sixty to two hundred dollars for each rebating violation. That’s why the correct statement is that the penalty falls within this range. The other options don’t fit because there is indeed a penalty (not none), the amount isn’t determined by the insurer, and the stated ranges in the other choices don’t align with the statute.