Michael sold an auto insurance policy to Marion. He gave her a gift card as a thank you. What is Michael guilty of?

In the context of insurance practices, when an agent offers a gift or incentive to a client as a thank you for their business, it is classified as rebating. The concept of rebating refers to the practice where agents provide clients with something of value as an inducement to purchase insurance. This can include discounts, gifts, or any financial benefit that is not included in the premium quoted for the insurance policy.

In many jurisdictions, including Utah, rebating is often regulated. While it may be a common practice in some industries, it can raise ethical concerns in the insurance industry, where fairness and transparency are crucial. Given that Michael provided a gift card to Marion after the sale, this action falls squarely in the realm of rebating as he is providing a financial incentive tied to the purchase of an insurance policy.

Options such as fraud or bribery suggest activities that involve deception or coercion, which are not applicable in this scenario since the transaction was voluntary and documented with Marion's consent. Accepting rebates would imply that Michael received something from Marion rather than giving it. Therefore, the most fitting classification for Michael’s actions is rebating, as it aligns directly with the nature of giving a gift to a customer in appreciation for their business.