The act of giving something of value to an applicant by the agent/broker in return for purchasing a life insurance policy (e.g. sharing commissions). Rebating is illegal in most states.
"Rebating is prohibited in the Federal crop insurance program. However, certain premium reductions are authorized by Congress under the Federal Crop Insurance Act (Act). As a general matter, the authority to control rebating is left to the Risk Management Agency (RMA), which takes this prohibition seriously and enforces it stringently. In some instances, state law is applicable and RMA coordinates with the States to discover whether violations of state law have occurred. Even where rebating is governed by Federal law, the States still have an interest."
For example, Returning part of the commission or giving anything else of value to the insured as an inducement to buy the policy. It is illegal in most states for an agent to rebate commissions.
Further details - Rebating:: Search