What is the maximum initial compensation that can be paid for enrollment?

The correct choice reflects that the maximum initial compensation for enrollment is indeed equal to fair market value. This concept ensures that compensation is aligned with what is generally accepted in the market for similar services. By tying compensation to fair market value, it prevents overpaying or underpaying agents or brokers, thus maintaining the integrity of the enrollment process.

This approach helps ensure that compensation is justifiable and reflects the actual effort and resources expended in enrolling members. It is also designed to encourage ethical practices and compliance with regulatory standards, helping to create a level playing field within the industry.

Other options may suggest factors that do not accurately represent how compensation is typically structured in this context, such as variable amounts based on arbitrary factors or set amounts that do not consider the market conditions.