If you accept any rebate, refund, commission, preference, patronage, dividend, discount or other consideration, the fine will be up to

• A. Fine up to $3,000 and a misdemeanor
• B. Fine up to $10,000 and a felony
• C. Fine up to $15,000 and a felony
• D. Fine up to $5,000 and a misdemeanor

Answer: (B)

Trying to influence insurance transactions with any rebate or other consideration is illegal. When someone accepts rebates, refunds, commissions, preferences, patronage, dividends, discounts, or similar inducements, the law treats that as a serious offense and imposes criminal penalties. The penalty specified is a felony with a fine of up to ten thousand dollars, which underscores the importance of keeping premium dealings free of improper inducements. The other options won’t fit because they propose either a lower misdemeanor fine or a higher amount paired with a misdemeanor/felony that the statute does not impose. The correct rule is a felony up to ten thousand dollars, reflecting the gravity of accepting or offering kickbacks in this context.