Which practice involves giving something of value to entice a person to purchase a policy?

The practice that involves giving something of value to entice a person to purchase a policy is known as rebating. Rebating occurs when an agent or company offers a premium reduction or additional incentives, such as cash or gifts, to persuade a customer to buy a specific insurance product. This practice is often used as a marketing strategy to draw in new customers by making the offer more attractive or affordable.

In the context of insurance laws and regulations, rebating can be a controversial practice. Many jurisdictions have specific rules regarding rebating to prevent agents from engaging in unfair or misleading practices. However, the core idea behind rebating is that it incentivizes the purchase decision by providing additional value beyond what's typically offered by the insurance policy itself.

The other practices listed—such as underwriting, risk assessment, and premium financing—are all integral parts of the insurance process but do not directly involve the act of incentivizing a customer to make a purchase through gifts or discounts. Underwriting refers to the evaluation of risk to determine the terms of coverage, risk assessment involves analyzing potential exposure to loss, and premium financing pertains to the arrangement of loans to pay for insurance premiums. Thus, these options do not align with the concept of enticing a purchase through the provision of additional value.