What is an unethical practice involving premiums as noted in the code of conduct?

Rebating or offering a lower premium than listed is considered an unethical practice within the framework of the code of conduct. This behavior undermines the integrity of the insurance market by creating an uneven playing field. Rebating can lead to unfair competition, as it allows some agents or brokers to attract clients through financial incentives that are not authorized or disclosed. The ethical standard in insurance aims to promote transparency and fairness, ensuring that all clients receive equal treatment based on their needs rather than being influenced by lower pricing tactics that may not reflect the true value of the coverage offered.

In contrast, offering premium financing options, providing premium breakdowns, and communicating premium adjustments are considered acceptable practices geared towards enhancing the client’s understanding of their policies and making insurance more accessible. These practices foster a clear and honest relationship between the insurer and the client, aligning with regulatory expectations.