What is the term for an agent who offers a cash reward to a prospect for purchasing a policy?

The term for an agent who offers a cash reward to a prospect for purchasing a policy is rebating. In the insurance industry, rebating refers to the practice of returning a portion of an insurance premium to the policyholder as an incentive to persuade them to buy a policy. This practice can be risky and is often regulated or prohibited in various jurisdictions, as it may create an unfair competitive advantage or lead to situations where insurance products are not chosen based on their merits.

The concept is distinct from bribery, which implies an illegal exchange intended to influence someone’s actions. It’s also not the same as fraud, which involves deception to secure unfair or unlawful gain. Inducement generally encompasses various marketing strategies to encourage someone to purchase a product, but it does not specifically refer to cash rewards like rebating does. Thus, rebating accurately captures the scenario of offering a cash reward for the purchase of an insurance policy.