Insurance Rebating Laws. Punishment typically falls on the company or agent who offered the rebate. • negotiating commission with clients outside of a broker agreement.
A broker that rebates or incentivizes a client to purchase life insurance is placing their insurance license and company at risk. In addition, some insurance companies pay higher commission rates. A rebate is any incentive that an insurance agent, broker, or company offers to coerce a customer into signing on to a policy.