What must agents avoid to comply with ethical insurance practices?

Engaging in rebating is considered unethical in many jurisdictions, including for agents in the insurance industry. Rebating involves giving clients something of value, such as cash or gifts, as an inducement to purchase or renew an insurance policy. This practice can compromise the integrity of the insurance market by creating unfair advantages and undermining the principle of fair competition among insurance providers. Regulatory authorities often prohibit rebating because it can lead to a lack of transparency and potential exploitation of consumers, ultimately eroding trust in the insurance industry.

By avoiding rebating, agents ensure they operate within ethical boundaries, fostering a culture of honesty and integrity that benefits both consumers and the industry as a whole. It is essential for agents to adhere to regulatory standards and ethical guidelines to build and maintain trust with their clients.