In insurance, a portion of an agent's commission returned to a customer as an inducement to place the insurance through the agent This practice is illegal in all but two states as against public policy Reciprocal exchange - A type of insurance managed by an attorney-in-fact in which members pay premiums, and share in losses equally Membership is required for insurance
a refund of some fraction of the amount paid join with a rebate; "rebate the pieces of timber and stone" cut a rebate in (timber or stone) give a reduction in the price during a sale; "The store is rebating refrigerators this week
Compensation received from a wholesale lender that can be used to cover closing costs or as a refund to the borrower Loans with rebates often carry higher interest rates than loans with "points" (see Points)
Discount technique used mainly by manufacturers to bring down the final price that consumers pay for an item Only 5% to 10% of eligible rebates are ever redeemed
Used in the context of general equities Negotiated return of a portion of the interest earned by the lender of stock to a short seller When a stock is sold short, the seller borrows stock from an owner or custodian and delivers it to the buyer The proceeds are delivered to the lender The borrower, who is short, often wants a rebate of the interest earned on the proceeds under the lender's control, especially when the stock can be borrowed from many sources Note: the seller must pay the lender any dividends paid out or, in the case of bonds, interest which accrues daily during the course of the borrow
A rebate is an amount of money which is paid to you when you have paid more tax, rent, or rates than you needed to. a tax rebate = refund. an amount of money that is paid back to you when you have paid too much tax, rent etc (rebate (15-21 centuries), from rabattre ). Retroactive refund or credit given to a buyer who has purchased a product or service. Fair and equitable rebates are used simply as incentives available to all customers. So-called deferred (or exclusive-patronage) rebates are used by large vendors of perishables and consumer durable goods. To receive such a rebate, the purchaser must agree to buy certain goods or services exclusively from a particular vendor for a fixed period of time. Rebating was a common pricing tactic in the 19th century, often used by large companies to undercut competition from smaller firms. The U.S. railroad industry practiced price discrimination by granting secret rebates to important customers; the rebates granted to Standard Oil Co. helped it acquire a monopoly over the oil industry. Governments occasionally sponsor rebates on previously paid taxes such as property, income, or sales taxes. Tax rebates can be used to stimulate the economy, to return excess revenue to taxpayers, or to encourage specific actions such as energy conservation
A discount or reduction in price of a product or interest, not given in advance, but handed back because of prompt payment or other reason Many states regulate gifts and educational aids given to real estate brokers by supporting companies such as title companies, calling these in effect, a price discount (rebate)
A percentage of a cash loan's market value which is returned to the borrowing broker for the use of its cash in the investment of a short-term instrument The percentage varies depending on the institution and the current short-term interest rate
A return of a portion of the purchase price of an automobile offered by a manufacturer to increase sales of slow-selling models or to reduce inventories
Negotiated return of a portion of the interest earned by the lender of stock to a short seller When a stock is sold short, the seller borrows stock from an owner or custodian and delivers it to the buyer The proceeds are delivered to the lender The borrower, who is short, often wants a rebate of the interest earned on the proceeds under the lender's control, especially when the stock can be borrowed from many sources Note: The seller must pay the lender any dividends paid out or, in the case of bonds, interest that accrues daily during the term of the loan
Compensation received from a wholesale lender, which can be used to cover closing costs, or as a refund to the borrower Loans with rebates often carry higher interest rates than loans with "points" (see above)
A portion of the agent's commission returned to an insured or anything else of value given an insured as an inducement to buy The payment of policy dividends, retroactive rate adjustments, and reduced premiums that reflect the savings of direct payment to an agent or home office are not usually considered to be rebates In most cases rebates are illegal, both for the agent or insurer to give a rebate and for an insured to receive one (G)
Compensation received from a wholesale lender which can be used to cover closing costs or as a refund to the borrower Loans with rebates often carry higher interest rates than loans with "points" (see above)
- As part of the Omnibus Reconciliation Act of 1990, Congress required that a pharmaceutical company would have to pay a rebate on its products to receive reimbursement by the Medicaid program For all innovator products, the rebate is the greater of 15 1 percent of the average manufacturer's price (AMP) or the difference between the AMP and the manufacturer's "best price," (the lowest price offered to any other customer, excluding Federal Supply Schedule (FSS) prices, prices to state pharmaceutical-assistance programs, and prices that are nominal in amount, and includes all discounts and rebates) An additional rebate is required for any price increase for a product that exceeds the increase in the Consumer Price Index for all items since 1990 A rebate of 11 percent of each product's AMP is required for generic drugs