Offering free tickets to a sporting event to secure an insurance policy is an example of which illegal practice?

• A. Rebating
• B. Twisting
• C. Misrepresentation
• D. Defamation

Answer: (A)

Offering free tickets to a sporting event to secure an insurance policy is rebating. Rebating is when an insurer or producer gives something of value not specified in the policy to influence the sale or terms of the policy. This creates an improper incentive and can mislead a consumer about the true cost or value of the policy, which is why it’s illegal in Wisconsin.

Twisting involves deceptive tactics to induce a policyholder to replace an existing policy with a new one for the agent’s or insurer’s benefit, not about gifts tied to the original purchase. Misrepresentation is making false statements or omissions to get someone to buy a policy. Defamation is making false statements about someone that harm their reputation. The scenario fits rebating because the free tickets are used as an inducement to purchase the policy, not as part of accurate information or legitimate policy terms.