If an agent offers free tickets to a sporting event in exchange for an insurance policy purchase, the agent is guilty of what?

The scenario describes an agent offering free tickets as an incentive for purchasing an insurance policy. This practice falls under rebating, which is the unlawful act of returning part of the premium or providing extra benefits to induce someone to buy insurance. Rebating is prohibited in many states, including Texas, because it undermines the integrity of the insurance market and could mislead consumers about the true costs and benefits of insurance products.

In this case, offering free sporting event tickets constitutes an advantage that can influence the buyer's decision, which is the essence of rebating. It ensures that the transaction is not strictly based on the merit of the insurance policy itself but rather on additional external benefits. Understanding this helps clarify the legal and ethical considerations surrounding incentive practices in the insurance industry.