What is the practice of providing a portion of the insurance commission or premium to the policyholder called?

Rebating refers to the practice where an insurance agent returns a portion of the insurance commission or premium to the policyholder as an incentive or to make the policy more attractive. This practice can create a competitive advantage for the agent by lowering the overall cost of coverage for the policyholder. However, it's important to note that rebating is often regulated or prohibited in many states, including Georgia, as it can lead to unethical practices and disrupt the fairness in the marketplace. Recognizing rebating is crucial for life agents to ensure compliance with state laws, as engaging in this practice without adherence to regulations can result in penalties or the loss of one's license to operate in the insurance industry. Thus, understanding rebating helps agents navigate the ethical landscape in their profession.