What is the term for a producer who illegally discounts insurance premiums?

The term for a producer who illegally discounts insurance premiums is rebating. Rebating occurs when an insurance producer offers a portion of their commission or some other form of financial incentive to the consumer, effectively lowering the insurance premium in a way that is not allowed by state law. This practice can undermine the integrity of the insurance market, leading to unfair competition and potential harm to both consumers and legitimate producers who follow the regulations.

In this context, understanding rebating is critical for insurance producers in order to comply with state laws and maintain ethical practices. The other terms do not apply in the same way; for example, discounting refers to reducing prices in a general sense but does not specifically address the illegal aspect of this behavior in insurance.