What term is used to describe any inducement in the sale of insurance that is not outlined in the insurance contract?

The term used to describe any inducement in the sale of insurance that is not outlined in the insurance contract is "rebate." In the insurance industry, a rebate refers to a portion of the premium returned to the policyholder as an incentive or reward for purchasing a policy. However, paying rebates is generally illegal in many jurisdictions, including Georgia, as it can lead to unfair competition and discrimination among insurance agents.

Rebates are typically prohibited in order to maintain fairness in the market and to ensure that consumers make informed decisions based on the benefits of the insurance products themselves rather than being influenced solely by financial incentives. This regulatory measure protects consumers and ensures that insurance providers operate within ethical boundaries.

In contrast, promotion, commission, and incentive do not carry the same legal and ethical implications as rebates. Promotion refers to marketing strategies used to generate interest in insurance products, commission is the payment that agents receive for selling insurance policies based on a percentage of the premium, and incentive is a broader term that may encompass various additional benefits or rewards provided to agents or customers but does not specifically denote an illegal practice like a rebate does.