Which of the following actions is considered a form of unfair trade practice?

Rebating is considered a form of unfair trade practice because it involves offering or giving a portion of the commission or premium to entice a potential policyholder to purchase an insurance policy. This practice is frowned upon in the insurance industry as it can create an uneven playing field among agents and disrupt fair competition. By offering a financial incentive, rebating can also lead to consumers making decisions based on monetary incentives rather than the true value or appropriateness of the insurance coverage.

In contrast, activities such as insurance claim processing, annual policy reviews, and providing risk assessments are standard practices that help consumers understand their insurance needs and ensure that claims are handled fairly and efficiently. These actions are aimed at enhancing consumer satisfaction and promote transparency in the insurance marketplace. Therefore, rebating stands out as a practice that undermines the integrity of the insurance profession and is classified as unfair trade.