What unfair practice did Agent Brooke commit by promising a new car for insurance placement?

The correct answer is rebating, which refers to the practice of offering something of value, such as money, gifts, or a new car, as an incentive to induce someone to purchase insurance or to place business with a specific insurance provider. In this scenario, Agent Brooke promised a new car in exchange for the placement of insurance, which constitutes a violation of ethical standards and regulations governing insurance practices.

Rebating is prohibited because it undermines the integrity of the insurance market by distorting competition. It can lead to unequal treatment among policyholders and may encourage individuals to make purchasing decisions based on the incentives rather than the actual benefits and coverage of the insurance policy.

This practice is clearly distinguished from coercion, which involves pressuring someone to take action against their will, twisting, which entails misrepresenting a policy to get someone to replace their current insurance with a new policy, and misrepresentation itself, which involves providing false or misleading information about an insurance product. In contrast to these practices, rebating specifically addresses the act of offering value to influence an insurance transaction.