What term describes the action of promising a gift equal to half the commission to motivate a buyer to sign an insurance application?

The appropriate term for the action of promising a gift equal to half the commission to motivate a buyer to sign an insurance application is rebating. Rebating involves the return of a portion of the premium or commission to the policyholder as an inducement to purchase insurance. This practice is often considered illegal in many jurisdictions, including Colorado, because it can create an unfair competitive advantage and does not align with the ethical standards of the insurance industry.

Rebating is specifically aimed at incentivizing a potential buyer, which is why it is the correct term for the described action. It highlights the regulatory concerns surrounding practices that might mislead or unduly influence consumers in their decision-making regarding insurance products.

The other terms, while related to insurance practices, focus on different unethical behaviors. Twisting refers to the practice of persuading a policyholder to drop an existing policy and take out a new one with an insurer, often falsely representing the benefits. Misrepresentation involves misleading or false information regarding the policy or its benefits. Coercion suggests the use of force or intimidation to achieve compliance, but that is not applicable in the context described. Thus, rebating accurately captures the incentive described in the question.