Which among the following is an example of an unfair trade practice?

Churning policies without justification exemplifies an unfair trade practice because it involves a broker or agent encouraging clients to replace their existing insurance policies with new ones, often for their own financial gain rather than the client's benefit. This practice can lead to unnecessary costs for the insured, such as lost benefits or increased premiums, and may create confusion or hardship for the policyholder.

In contrast, advertising rates competitively, offering legal rebates, and providing clear contracts are generally considered acceptable practices in the insurance industry. Competitive advertising promotes transparency and allows consumers to make informed choices based on available options. Offering rebates, when done legally, can incentivize customer loyalty without violating regulations. Clear contracts also serve to protect consumers by ensuring they understand the terms and conditions of their coverage. Thus, these practices contribute positively to market integrity and consumer trust, whereas churning undermines that integrity.