Splitting the commission with the buyer on a sale of insurance is known as

• A. Twisting
• B. Binding
• C. Soliciting
• D. Rebating

Answer: (D)

Splitting the commission with the buyer is rebating. Rebating means offering part of the agent’s commission or some other valuable consideration to the insured to influence their purchase decision. This practice is prohibited or tightly regulated in most jurisdictions because it can bias the buyer and undermine fair competition. The other terms refer to different behaviors: twisting involves misrepresenting a policy to cause someone to replace an existing coverage; binding describes making a policy effective or a temporary binder; soliciting is simply the act of seeking applicants for insurance. Since the scenario centers on giving part of the commission to the buyer to secure the sale, rebating is the best fit.