What is the term for offering any return of premiums or valuable consideration not specified in the policy?

The term that refers to offering any return of premiums or valuable consideration that is not specified in the insurance policy is known as rebating. Rebating is a practice where an agent or insurer returns a portion of the premium paid by the policyholder or provides some form of additional benefit as an incentive to buy the policy. This practice is generally prohibited in many jurisdictions, including South Dakota, as it can lead to unfair competition and undermine the integrity of the insurance market.

Other terms like subsidizing, premium adjustment, and fraudulent inducement pertain to different contexts within insurance. Subsidizing typically refers to a form of financial support to make a product more affordable but does not specifically address the return of premium. Premium adjustment usually involves changes made to premiums based on various factors, such as claims experience or underwriting review. Fraudulent inducement, on the other hand, involves misleading statements or actions designed to trick someone into purchasing a policy or providing personal information, which is significantly different from the concept of rebating.