Texas Statutes and Rules Common to Life and Health Insurance
Why does Texas prohibit rebating even when the client clearly benefits from it?
Answer and explanation
Answer: C. Rebating undermines rate equity: two buyers in the same class end up paying different effective prices depending on how much commission an agent is willing to give away.Source: Texas Insurance Code — Tex. Ins. Code ch. 1806, purpose of the anti-rebating provisions
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590 Texas questions like this one.
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