Florida Life and Health Insurance License Practice Test

Rebating is the practice of giving something of value, such as gifts or discounts, to a potential or current insurance customer as an inducement to purchase or continue a policy. This practice is illegal because it undermines the principles of fair competition in the insurance industry. Option C, sharing commissions with licensed agents, is also considered rebating and is therefore NOT a permissible practice. Options A, B, and D are all examples of rebating because they involve offering discounts, returning premiums as gifts, or providing benefits that are not directly related to the insurance policy.