Grace is a life insurance agent.She is attempting to sell a large life insurance policy,but the prospective purchaser is having second thoughts.To persuade the prospective purchaser,Grace said,"I will earn a $1,000 commission if you buy this policy.I'll give you $500 of my commission if you buy the policy." In most states,what illegal sales practice will Grace be guilty of if she splits her commission with the purchaser?

Question

Quizplus · Accepted Answer

Rebating is the illegal practice of returning a portion of the insurance agent's commission to the policyholder as an inducement to purchase the policy. Splitting the commission with the purchaser is a form of rebating and is illegal in most states.

Grace Is a Life Insurance Agent