An agent offers his client free tickets to a sporting event in exchange for the purchase of an insurance policy. What is the agent guilty of?

The correct answer is rebating. In the context of insurance, rebating refers to the practice of offering something of value (such as free tickets to a sporting event) to a client as an inducement to purchase an insurance policy. This practice is generally prohibited in many jurisdictions, including Colorado, as it can create an unfair competitive advantage and may lead to a misunderstanding of the value of the insurance product being offered.

By offering free tickets, the agent is essentially providing an incentive that could influence the client's decision to buy the policy, rather than allowing the decision to be made based solely on the merits and needs related to the policy itself. The prohibition against rebating is in place to ensure that all clients receive a transparent and fair assessment of the products and services available to them without outside influences that may compromise their judgment or understanding of the policy's true value.

The concept of coercion involves forcing someone to act against their will, which does not fit this scenario. Fraud would imply a deceptive practice or intentional misrepresentation of the terms or benefits of the policy, which is not necessarily the case here. Misrepresentation typically involves false statements about the policy itself rather than the conditions surrounding the purchase. Therefore, rebating accurately captures the nature of the agent's actions