What practice involves offering something of value to induce a better insurance rate?

Rebating is the practice of providing something of value, such as money, gifts, or other incentives, to an insured individual with the intention of inducing them to purchase a particular insurance policy or to achieve a more favorable insurance rate. This practice is intended to encourage a prospective policyholder to choose one insurance provider over another based on the additional value that is provided.

In many jurisdictions, including West Virginia, rebating is considered illegal as it undermines the principle of fairness and could lead to the unfair treatment of consumers across the insurance market. Insurance companies should compete on the merits of their products and pricing, rather than through incentives that might sway a customer's choice for reasons unrelated to the actual benefits of the coverage being offered.

In contrast, practices such as coercion, discrimination, and intimidation do not accurately describe the lawful and voluntary behavior associated with rebating, as they focus more on unethical or illegal pressure tactics rather than legitimate inducements for business.