Giving a _______ a portion of the agent's commission would be considered rebating.

Study for the Texas Funeral Prearrangement License Exam. Enhance your knowledge with flashcards, multiple choice questions, hints, and explanations to ace your exam!

Rebating refers to the practice of returning a portion of a commission or fee to a policyholder or client as an incentive for purchasing a policy or service. Within the context of funeral prearrangement and related services in Texas, if an agent were to give a portion of their commission to a policyholder, it would be seen as a form of rebating, which is generally prohibited by regulations in many states, including Texas.

This is intended to maintain a level playing field in the industry and to ensure that prices remain fair and consistent without undue influence from financial incentives. Agents are expected to earn their commissions solely through the sale of services and not through the provision of discounts or rebates to clients as a way to entice them.

The other options, such as distributor, investor, and dependent, do not align with the definition of rebating as they do not typically involve the policyholder or client directly receiving a portion of the commission. These roles may interact with the agent in various ways, but repaying a portion of commission to them would not classify as rebating under the general definitions applicable in this context.

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