What is referred to as giving something of value to induce a customer to purchase insurance?

The correct answer is rebating, which refers to the practice of offering something of value—such as cash, gifts, or discounts—to persuade a customer to purchase insurance. This practice is highly regulated and often prohibited in many states because it can create unfair competition and lead to unethical behavior in the insurance industry.

Rebating is different from underwriting, which involves the process of evaluating risks and determining the terms and pricing of insurance policies. Underwriting focuses on assessing the risk presented by potential policyholders and ensuring that the insurance company can sustain its financial responsibilities.

Whistleblowing pertains to reporting unethical or illegal activities within an organization; it is not related to the inducement of customers for sales purposes. Subrogation is a legal principle that allows an insurer to pursue a third party that caused a loss to recover the amount of the claim paid to the insured. While these terms are relevant within the realm of insurance, they do not pertain to the inducement of purchasing behavior like rebating does.