What is the practice of returning a portion of an agent's commission to the insured called?

The practice of returning a portion of an agent's commission to the insured is referred to as a rebate. This term specifically describes the act of providing some financial return to the policyholder, which can be an incentive for clients to obtain insurance through a certain agent.

Rebates are often seen as a way to enhance customer loyalty and satisfaction, potentially making it more attractive for clients to renew their policies or select a particular agent. However, it's important to note that the legality and regulation of rebates can vary significantly between jurisdictions, with some states placing restrictions on the practice to ensure fair competition and consumer protection.

The concept of a refund generally implies giving back money for an overpayment or for a service that was not rendered, rather than a portion of a commission. A discount is a reduction in price offered upfront and does not involve the return of a commission from the agent. An incentive can refer to various types of rewards or bonuses given to motivate certain behaviors but does not specifically denote the act of returning part of a commission to the insured.