rebating

  • An illegal practice that consists of granting to an insured, as an inducement to accept a policy, a part of the commission paid to the agent by the company.

    Internal Revenue Service 1

1Internal Revenue Service, Internal Revenue Manual 4.42.6 Glossary, http://­www.irs.gov/­irm/­part4/­irm_04-042-006.html (last accessed Dec. 22, 2009).