Final answer:
Offering to split an insurance agent's commission with a prospective applicant is known as rebating, which is usually illegal or regulated as it can lead to unfair competition and policy misrepresentation.
Step-by-step explanation:
If an insurance agent offers to split their commission with a prospective applicant, this would be considered B. Rebating. Rebating in the insurance industry is the practice of giving a portion of the agent's commission or any other financial incentive to a policyholder as an inducement to purchase the policy. Such an offer of a rebate from the agent might seem attractive to the applicant, but it is typically prohibited or heavily regulated in most states because it can result in unfair competition and misrepresentation of policy costs and benefits.