Ohio Insurance Laws and Regulations Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Prepare for the Ohio Insurance Laws and Regulations Exam. Dive into essential topics with detailed practice questions designed to enhance your knowledge and readiness. Ace your exam and ensure your success in the insurance field!

Practice this question and more.

What is it called when an insurance agent agrees to pay the first monthly premium for an applicant?

Donation
Rebate
Gift
Bonus

The correct answer is: Rebate

This practice is known as a rebate. Although a donation, gift, or bonus may also involve one party giving something to another, there is typically no expectation of payment or exchange of services in return. In contrast, a rebate specifically involves the insurance agent agreeing to cover a portion or the entirety of the first monthly premium in order to incentivize the applicant to purchase a policy. Therefore, B is the most accurate option.