Which of the following terms refers to the practice of an agent offering something of value to induce a policy purchase?

The term that refers to the practice of an agent offering something of value to induce a policy purchase is rebating. This practice involves an agent providing incentives, such as cash rebates or gifts, to persuade potential clients to buy an insurance policy. While rebating can create a competitive advantage in attracting customers, it is often regulated or prohibited in many jurisdictions due to concerns about fairness and the potential for unethical sales practices.

On the other hand, twisting refers to a deceptive practice where an agent convinces a policyholder to switch policies without a real benefit, often leaving the policyholder worse off. Premium discrimination involves different rates for different policyholders based on risk factors, which is a standard practice in insurance. Misrepresentation occurs when false information is provided to convince an individual to buy a policy, but it does not entail offering something of value as an incentive.

Focusing on rebating highlights how inducements can influence consumer choices and aligns with the legal and ethical considerations in insurance sales.