Which of the following is an example of rebating?

Rebating refers to the practice of returning part of an insurance premium or providing a benefit as an incentive to purchase insurance. In this context, providing gifts with a policy purchase aligns closely with the concept of rebating, as it can be seen as a way to entice customers beyond the standard contractual obligations of an insurance policy. This can include offering items or services that have value, effectively incentivizing the consumer to choose one insurer over another.

Offering a sale on future premiums, for instance, does not constitute rebating because it involves a promotional strategy rather than an inducement tied to the purchase of the policy itself. Similarly, voluntarily lowering premiums indefinitely may improve affordability but does not involve giving back value to the policyholder at the point of sale, thus not meeting the definition of rebating. Redirecting claims revenue to the policyholder diverges even further from rebating, as it pertains to claims processing rather than the initial purchase incentive.

Overall, option B captures the essence of rebating by directly providing an additional value proposition to the policyholder at the time of their policy acquisition.