What term describes giving something of value to induce the purchase of an insurance policy?

The term that describes giving something of value to induce the purchase of an insurance policy is rebating. In the context of insurance, rebating refers to the practice where an agent returns part of their commission or offers some sort of incentive, such as a gift or discount, to a prospective policyholder as a way to encourage them to purchase a policy.

This practice is often regulated by state laws, as it can create unethical marketing practices and lead to unfair competition within the insurance industry. Some states may prohibit rebating altogether or impose restrictions to ensure that consumers are not lured into purchasing policies based on promises of special deals or incentives rather than the quality and suitability of the insurance coverage itself. Understanding rebating is essential for insurance producers to comply with legal requirements and maintain ethical standards in the industry.