Any producer who provides a client with a kickback of commissions has engaged in "rebating."
The provision of a service of value that isn't stipulated in the policy. Rebating is against the law.
<h3>What is rebating?</h3>
The exercise of trying to return a broker's commission, or even a portion of it, to a insured in order to induce an insurance sale is known as rebate.
Typically, the insurance agent pays for the rebate.
Some key features regarding the rebating are-
- Rebating is also referred to as "induction." Incentives, on the other hand, can refer to indirect aspects of payments and benefits given by broker or agent.
- Many provinces as well as states consider rebates to be illegal.
- While the laws governing rebating vary greatly, the overriding objective is to safeguard customers from unfair sales practices by insurance companies & licensed agents.
- A broker who rebates and actually encourages a client to buy life insurance jeopardizes their insurance license.
To know more about rebating, here
brainly.com/question/12141027
#SPJ4
