Texas Statutes and Rules Common to Life and Health Insurance
An agent offers to pay the first month's premium out of her own commission if the client buys the policy today. How does Texas law treat this?
Answer and explanation
Answer: A. Rebating is offering any valuable consideration not specified in the policy as an inducement to purchase. The source of the funds and the agent's good intentions do not matter.Source: Texas Insurance Code — Tex. Ins. Code ch. 1806, prohibited rebates and inducements in life insurance
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