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LLQP (Life Licence Qualification Program) Practice Exam · Question

Which of the following actions constitutes 'rebating'?

Rebating involves the agent giving back a portion of their commission or offering a gift/premium to the client as an inducement to buy the policy. This is stric

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Question: Which of the following actions constitutes 'rebating'?

Answer options:

  • Offering a choice between two different insurers. ✅ Giving a client a $200 cash 'kickback' from the commission to encourage them to sign.
  • Providing a free needs analysis to a prospective client.
  • Hosting a seminar on retirement planning.

Correct answer: Giving a client a $200 cash 'kickback' from the commission to encourage them to sign.

Explanation: Rebating involves the agent giving back a portion of their commission or offering a gift/premium to the client as an inducement to buy the policy. This is strictly prohibited.

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