An example of rebating would be:

Rebating occurs when an insurance producer provides a client with a portion of their commission as an incentive for purchasing a policy. This practice is considered a form of rebating because it involves sharing the income generated from the sale of the insurance product directly with the policyholder.

In this case, when a producer shares commissions with a client, it is seen as offering an inducement to enter into a contract that is not reflected in the standard premium. Regulatory bodies often prohibit this practice to maintain fairness and integrity in the insurance marketplace, ensuring that all consumers are treated equitably.

The other options do not represent rebating in the same context. Offering lower premiums is simply a pricing strategy, charging fees for services is a standard business practice where fees replace commissions, and providing gifts to clients may be seen as a marketing gesture, provided they are within acceptable limits defined by law. However, these do not involve directly sharing commission payouts, which is central to the definition of rebating.