Which of the following is NOT considered rebating?

Rebating involves giving something of value to a client or potential client as an incentive to purchase a policy, which generally goes against the ethical guidelines of insurance practices. In this context, the correct choice reflects an action that does not fall under the definition of rebating.

Using misrepresentation for a policy switch does not qualify as rebating because it involves deceit rather than an incentive or reward for the purpose of closing a sale. Misrepresentation would violate legal and ethical standards in insurance, as it obscures the true nature of the policy being sold and can lead to harmful consequences for the insured. In essence, this action is more about dishonest practices than about offering a benefit to influence a customer’s decision.

On the other hand, the other choices involve providing a clear incentive or benefit, which aligns with the concept of rebating:

• Cash back incentives after a sale directly reward the consumer financially to encourage the purchase.

• Offering gift cards with purchases provides an immediate tangible benefit associated with the transaction.

• Promoting a lower price than competitors can also be considered a form of rebating as it serves to entice customers through a financial advantage.

Thus, the action of misrepresentation linked to policy switches does not fit within the framework of rebating, making it the