Which statements about rebating are true?

Rebating involves offering special inducements or incentives to potential clients as a means of encouraging them to purchase an insurance policy. This practice often includes providing a portion of the agent's commission back to the policyholder or offering gifts, services, or other advantages that are not part of the policy’s terms. The goal is to make the policy more attractive to prospective buyers, but it can lead to ethical concerns and regulatory scrutiny, particularly if it distorts the true value of the insurance product or undermines fair competition among agents.

The other statements discuss aspects of rebating that do not align with its typical definition and implications. While some statements may reflect general sentiments about professionalism or regulatory circumstances, rebating is largely viewed through the lens of providing enticing additional benefits rather than enhancing professionalism or being broadly permissible. Understanding the nature of rebating highlights its contentious role in the insurance industry.