Which of the following statements about rebates is NOT true?

The choice regarding whether rebates are allowed if in the best interest of the client is not true because, in Illinois, the practice of rebating offers money or benefits to potential customers to incentivize them to purchase a policy, which is prohibited. Rebating is generally seen as an unethical practice because it can undermine the fairness and competition of the insurance market.

In contrast, the other statements provide accurate information regarding how rebates function within the insurance industry. For instance, stating that rebating can be anything of economic value correctly reflects that such incentives can come in various forms. Additionally, clarifying that dividends are not considered rebates is essential, as dividends are typically distributed to policyholders as a return of surplus or profit, not as an inducement to purchase. The remark about rebating being allowed only if stated in a policy is also accurate; rebates must be specifically included in the policy for them to be compliant with regulations.

Understanding these nuances ensures that individuals involved in the insurance sector adhere to ethical standards and regulatory compliance, thereby fostering a fair market environment.