Rebating is

Rebating refers to the practice where an insurance agent offers a portion of their commission or a gift as an incentive to persuade a consumer to buy an insurance policy. In Connecticut, rebating is considered illegal. This prohibition is in place to maintain the integrity of the insurance marketplace and to ensure that consumers make decisions based on the merits of the policy rather than financial inducements.

Allowing rebating could lead to unfair competition and potentially harm the financial soundness of insurance companies, as it could distort pricing and undermine consumer trust. Therefore, insurance providers and agents in Connecticut must adhere strictly to regulations that prohibit this practice to foster fair and honest dealings in the insurance sector.