New York State Life Insurance Exam Questions Practice Question
Which of the following gifts from an agent would NOT be considered rebating?
Correct Answer: A
Rationale: Rebating refers to the practice of returning a portion of a premium or offering gifts to entice clients, which is often prohibited.
Option A, the $5 pen with the insurer's name, is a promotional item that serves to advertise the insurer rather than incentivize a purchase, thus not qualifying as rebating.
Option B, the $20 t-shirt without the insurer's name, lacks branding and may be perceived as a gift to influence decisions, which could be considered rebating.
Options C and D involve items with significant value and branding, which could be interpreted as inducements to purchase, making them clear examples of rebating.
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