Final answer:
An agent who discounts insurance premium illegally is practicing rebating. This is distinct from twisting, defamation, and collusion, which involve other unethical or illegal activities not directly related to premium discounting.
Step-by-step explanation:
An agent who illegally discounts insurance premium is said to be engaged in rebating. Rebating is a practice where an insurance agent gives part of their commission or company profits back to customers as a discount or a kickback, which is usually illegal.
Twisting refers to the unethical practice of misleading a policyholder to cancel their current insurance policy and switch to a new one, usually to the detriment of the policyholder. Defamation involves making false, harmful statements about an individual or company. Collusion is a non-competitive secret or sometimes an illegal agreement between rivals that attempt to disrupt the market's equilibrium. While collusion typically concerns price-fixing or market-sharing, it does not involve rebating activities directly tied to insurance premiums.
The temptation to earn higher profits can make firms defy the law through practices like rebating, even though it is illegal in many parts of the world.