What is an example of rebating?

Rebating refers to the practice where an insurance agent returns a portion of the insurance premium to the policyholder as an incentive for them to purchase a policy. This can be seen as a violation of ethical standards in the insurance industry because it can create an uneven playing field among agents and might lead clients to make decisions based on deceptive pricing rather than the quality of the coverage being offered.

In the context of the other options, offering temporary insurance coverage is a legitimate practice used in certain situations, such as binding coverage before formal policy issuance. Canceling an insurance policy without cause typically relates to the policyholder’s rights or the insurer's obligations but does not involve any kind of inducement related to premiums. Selling mass-marketed insurance products involves multiple customers purchasing similar policies, which is a standard practice and does not involve any return of premium. Therefore, returning a portion of a premium directly correlates with the definition of rebating, making it the correct answer.