Rebating In Life Insurance at Life

Rebating In Life Insurance. It is a situation where some of the commission earned in the sale of life insurance is given back to the insured as an incentive to close the deal. What is rebating in life insurance?

Inducement to insurance or after insurance has been effected, a rebate, discount, abatement, credit, or reduction of the premium named in the policy of insurance, or a. This one covers some risks and moral hazards. Rebating is the practice of returning the broker's commission, or a portion of it, to the insured with the desire of inducing an insurance sale.

Anti Rebating Laws Insurance Life Insurance Compendium

(florida statutes section 626.572 on rebating is quoted below.) to briefly summarize, first, the insurer must allow rebating and must have a rebating schedule from the agent on file. California, florida, and maine allow some variations of rebating, though it is still not an extremely common practice. However, there are circumstances in which rebating can be legal if performed properly. In most states, rebating is an illegal practice.