Question

"All of the following actions are considered rebating EXCEPT

A.offering a country club membership as an inducement to purchase insurance
B.offering employment as an incentive to purchase insurance
C.giving back commissions to a client"

Answer 1

Rebating is the practice of offering something of value as an inducement to purchase insurance. While offering a country club membership as an inducement to purchase insurance is considered rebating, offering employment as an incentive and giving back commissions to a client are also considered rebating.

Step-by-step explanation:

Rebating is the practice of offering something of value as an inducement to purchase insurance. In this case, offering a country club membership as an inducement to purchase insurance is considered rebating. However, offering employment as an incentive to purchase insurance and giving back commissions to a client are also considered rebating. Rebating is generally prohibited as it can lead to unfair competition among insurance companies.