What does Rebating mean? Read on to discover the definition & meaning of the term Rebating - to help you better understand the language used in insurance policies.
Giving a premium reduction or another financial advantage not stated in the policy as an inducement to purchase the policy. The offer of sharing commissions with the applicant is an inducement that is not part of the insurance policy and, therefore, is considered rebating. Rebates include not only cash but also personal services and items of value. Rebating is considered a violation of the Unfair Trade Practices Acts in most states.
We hope the you have a better understanding of the meaning of Rebating.