Which of the following is NOT considered rebating in insurance?

The correct answer is that sharing commission with another licensed agent is not considered rebating in insurance. In the insurance industry, rebating refers to the practice of returning a portion of the premium or providing additional benefits to an applicant as an inducement to purchase a policy. This activity is generally prohibited under state insurance laws, including those in Connecticut.

However, sharing commissions among licensed agents is a standard practice. When agents work together on a deal, it is common and permissible for them to share commissions as compensation for their collaborative efforts. This arrangement is legal as long as all parties involved are licensed and the sharing of commission aligns with regulatory guidelines.

In contrast, giving gifts to clients that exceed a certain value, reducing premiums as an inducement for loyalty, and providing free financial advice with the intention to persuade clients to buy a policy can all be considered forms of rebating. These practices can create an unfair competitive advantage and are often scrutinized under insurance regulations.