A Denver producer offers to rebate a portion of her first-year commission to any applicant who buys a life policy from her this month. Under the unfair-trade-practice standards enforced in Colorado, this offer is:

Why B is correct

Rebating — returning part of the premium or giving any valuable consideration not specified in the contract as an inducement to purchase — is a classic unfair trade practice that the Colorado Division of Insurance enforces. Colorado prohibits inducements outside the contract because they constitute unfair competition: rebates effectively slash the price for favored customers and burden everyone else. The prohibition applies regardless of how fairly or evenly the producer offers the rebate.

Why the other options are wrong

• A) A commission does not become freely rebateable money; using it as a purchase inducement is precisely the banned practice.
• C) Uniform offering does not legalize a rebate; Colorado forbids the inducement itself, not merely its unequal application.
• D) The applicant's health is irrelevant; the rebate prohibition turns on the out-of-contract inducement, not on underwriting.

Memory hook

Kick the commission back, kick out the rule — rebates buy bans.