What practice involves giving a premium reduction to induce an individual to purchase a policy?

Rebating refers to the practice of returning a portion of the premium to the policyholder as an incentive to purchase a life insurance policy. This practice is commonly used as a marketing tool to make a policy more attractive to potential buyers. By providing a premium reduction, insurers aim to encourage individuals to choose their policies over others in the market, promoting competitiveness and potentially increasing sales.

Underwriting, while related to the assessment of risk and determining premiums, does not involve incentivizing customers through premium reductions. Pooling refers to the process by which insurers group risks together to manage them collectively, and subrogation pertains to the right of an insurer to pursue a third party responsible for a loss after it has paid a claim. These concepts do not directly relate to the act of providing discounts or rebates on premiums in order to influence a purchase.