What illegal activity is Kelly, the insurance agent, participating in by offering a $1000 shopping card for purchasing an insurance policy?

Kelly offering a $1000 shopping card for purchasing an insurance policy is considered rebating. Rebating is when an insurance agent offers something of value as an incentive for purchasing an insurance policy. This is illegal because it is seen as a way to circumvent regulations that protect consumers from being overcharged for insurance policies. Option B, fraud, is incorrect because although it is an illegal activity, it is not specifically related to insurance policies. Option C, phishing, is incorrect because phishing is a type of online scam, not related to insurance policies. Option D, embezzlement, is incorrect because embezzlement is when someone illegally takes money or property that does not belong to them.