Final answer:
North Carolina insurance law permits the practice of rebating but prohibits the practices of twisting, defamation, and collusion.
Step-by-step explanation:
North Carolina insurance law permits the practice of rebating but prohibits the practices of twisting, defamation, and collusion. Rebating refers to giving a portion of the insurance agent's commission or a premium reduction to a policyholder as an incentive to purchase the insurance. Twisting is the act of persuading a policyholder to replace an existing insurance policy with another policy through misrepresentation or false information. Defamation refers to making false statements about a person or business that harms their reputation. Collusion is an illegal agreement between competitors to manipulate the market and raise prices.