An example of an unfair trade practice of rebating would be?

Rebating refers to the practice of returning a portion of the premium paid by a policyholder as an incentive to purchase a life insurance policy. This practice can lead to unfair competition because it undermines the integrity of pricing, allowing some agents to attract business based on premium discounts rather than the quality of service or policy features.

In the context provided, waiving the first premium for immediate purchase is a classic example of rebating. By not requiring a payment upfront, an agent can essentially lower the initial cost of acquiring the policy, making it more appealing to potential clients. This can skew the marketplace by creating an unfair advantage over other agents who do not offer such incentives.

Offering free legal advice does not directly relate to the premium structure of the insurance policy, while providing a larger than usual policy amount and lowering premiums after the first year might be part of standard marketing practices or legitimate adjustments within the agreement of the policy. However, they are not inherently examples of rebating. Thus, option B stands out as the method that constitutes an unfair trade practice of rebating.