An agent offers his client free tickets to a sporting event in exchange for the purchase of an insurance policy. What is the agent guilty of?

The correct response highlights that the agent is guilty of rebating. Rebating occurs when an agent offers a client something of value, such as free tickets, as an incentive to purchase an insurance policy. This practice is prohibited in many states because it can create unfair competition among agents and distort the true pricing and value of insurance products.

The underlying principle of rebating is that insurance should be sold based on its merits rather than additional incentives which might erroneously influence a client's decision-making. The use of gifts or perks can lead clients to focus more on the benefits provided, rather than the actual terms and coverage of the insurance policy, potentially jeopardizing the client's understanding and satisfaction with the policy.

In contrast, other options such as fraud, misrepresentation, and coercion involve different behaviors. Fraud typically involves deceit for personal gain, misrepresentation refers to providing false information that can mislead a client, and coercion involves using force or intimidation to compel someone to act against their will. These options do not accurately describe the agent's behavior in this scenario focused around offering tickets for business.