"if the dealer receives a bung from the company"

Why bother asking the question if you phrase it like that? It's a business, they are there to make a profit. If nothing is sold, they don't make any. Eventually they go out of business. You are not forced to buy anything - make a considered choice as to whether you feel the product is suitable for you and reasonably priced. What the company makes ultimately out of it shouldn't worry you. Do you know how much Sky/Virgin/BT make out of a package? (as an example).

To directly answer re. cooling off period - monies will be clawed back so no they don't make money after a cancellation (the possible exception would be internal finance up to a certain amount).

Ok ok dont get your knickers in a twist!!! I think it patently obvious what your line of work is.

I guess most peoples gripe is the highly inflated prices some charge when the same product is available for much less with an adequate profit made.

Apologies anyway I should have used the word commission instead of bung. Very often means the same. Semantics and all that.

It's surely well known that retailers, whether selling motor cars or washing machines, make a bigger margin on insurance products than on the goods themselves.

Just say no and buy the policy directly from an insurer or repair company.

What's the problem?

Its a pity no one is prepared to answer the specific question I posed but instead goes off at tangents taking umbrage at my use of a certain road.

There must be many politicians on this site who are dab hands at avoiding the specifics.

No problem I shall try elsewhere.

In the specific circumstance of cancellation during cooling off period I'd imagine any gap or paintwork policies are cancelled too. No commission or bung.