Which practice is considered twisting when selling insurance?

Twisting in the context of selling insurance refers to a practice where an agent misleads or deceives clients into believing that a new policy provides greater benefits than their current policy, often with the intention of persuading them to switch policies. This misleading information can involve exaggerating the advantages of a new policy or underplaying the risks associated with the existing policy, ultimately leading clients to make decisions based on false or distorted information.

When an agent misrepresents the benefits of a policy, they undermine the principle of transparency and honesty that is essential to ethical insurance practices. This tactic can result in clients incurring penalties or losing valuable coverage, which is why twisting is considered unethical and is specifically prohibited in insurance regulations. It is important for agents to provide accurate and clear information so clients can make informed decisions based on a truthful understanding of their options.