Rebatingis the practice of offering or returning part of a commission, premium, or anything of value to an insured as an inducement to purchase an insurance policy. It is prohibited in Oklahoma under the Unfair Trade Practices Act (Title 36 O.S. § 1204) to ensure fair competition and prevent undue influence.
Option A: Incorrect. Coercion involves forcing someone to buy insurance, not offering inducements.
Option B: Incorrect. Defamation is making false statements harming reputation, not related to inducements.
Option C: Correct. Rebating involves giving value to induce a policy purchase.
Option D: Incorrect. Controlled business refers to writing insurance primarily for oneself or close associates, not inducements.
This question falls under the Prometric content outline section on “State Insurance Statutes, Rules, and Regulations,” which covers unfair trade practices.
[:, Prometric Oklahoma Life, Accident, and Health or Sickness Producer Exam Content Outline (Section: State-Specific Knowledge – Oklahoma Insurance Statutes)., Oklahoma Insurance Department, Title 36 O.S. § 1204 (unfair trade practices)., Standard insurance study guides (e.g., Kaplan, ExamFX) for Oklahoma producer licensing., ]
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