Which of the following is NOT considered rebating in Maryland insurance law?

In Maryland insurance law, rebating refers to providing a financial incentive or benefit to a policyholder or potential policyholder that is not explicitly outlined in the insurance policy itself. This practice is generally prohibited as it can lead to unfair competition and confusion in the marketplace regarding the actual costs and benefits of insurance products.

Sharing commissions with other licensed agents is not considered rebating because it is an accepted practice within the industry that aligns with regulatory standards. Commissions are compensation for services rendered, and sharing them generally occurs between licensed professionals as part of their business arrangements. Therefore, this action is compliant with the law, as long as it is conducted transparently and in accordance with the regulations governing insurance practices.

In contrast, actions such as refunding part of the premium, offering special dividends, or providing anything of value not specified in the policy could be seen as incentivizing customers outside of the agreed-upon terms of the insurance policy. These practices can distort the competitive landscape and are classified as rebating, which is why they are subject to strict regulations. Consequently, sharing commissions is the only practice listed that does not fall under the definition of rebating within Maryland's insurance framework.