Giving policyholders some part of the agent’s commission as an inducement to purchase insurance is...

Definition of rebating.

Rebating occurs when an agent offers part of their commission or other valuable consideration to induce the purchase of insurance.

Evaluate each option.

A. Twisting

Involves misrepresentation to replace a policy.

B. Rebating

Correct. Sharing commissions to induce a sale is rebating.

C. Replacement

Lawful when properly disclosed.

D. Retention

Not an unfair trade practice.

Maryland regulatory context.

Maryland prohibits rebating to ensure fairness among policyholders and prevent price discrimination.

Conclusion.

The described conduct is rebating.