Which of the following is an example of the Unfair Trade Practice known as rebating?

Rebating refers specifically to the practice in which an agent or broker shares a portion of the commission or premium with the insured as an incentive to purchase a policy. This practice is considered unfair because it can create an uneven playing field among agents and can lead to consumers expecting discounts or rewards that are not available through standard practices. By sharing commissions with the insured, the agent is essentially reducing the cost of the insurance policy, which can detract from the perceived value of the insurance product and disrupt fair competition.

In the context of the other choices, offering a discount on premiums and providing additional coverage at no cost do not fall under rebating, as they do not involve sharing commissions directly with an insured individual. Selling policies below market value could be a practice that raises different regulatory concerns, primarily related to solvency or the overall market dynamics, but does not fit the definition of rebating. Therefore, sharing commissions with the insured is the clear example of rebating in the context of unfair trade practices.