California Insurance Code & EthicsQuestion 49 of 315
Which of the following describes rebating?
a.Sharing commission with a co-licensed agent of record
b.Offering a group discount lawfully filed in the rate plan
c.Reducing premium by applying earned policy dividends
d.Returning part of the agent's commission to the applicant as an inducement to buy
Explanation
Rebating is offering any valuable consideration outside the policy as an inducement to buy. California now permits limited, non-discriminatory rebates if disclosed and offered uniformly, but the textbook definition tested here is the unlawful inducement form.
Law Reference: Cal. Ins. Code §750Practice all 315 questions free — no signup required.
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Sen Lin, PrepPass Founder · Verified against California Life & Health Insurance License Exam · How we review
Reviewed by John Zihao Zhang — California-Licensed Life Insurance Agent (CA Dept. of Insurance License #4396095 — verify)