What best describes twisting in insurance?

Twisting in insurance is characterized by the act of using misrepresentation to persuade a policyholder to terminate their existing insurance policy in favor of a new one. This deceptive practice often involves distorting the benefits, terms, or conditions of the current policy to make it seem less favorable than a proposed new policy. By misleading the policyholder, the insurer hopes to gain new business or commissions while undermining the trust and value of the existing policy.

Understanding twisting is critical for both consumers and professionals in the insurance field. It highlights the importance of ethical practices in sales and the need for policyholders to critically evaluate information provided by agents. In contrast, full disclosure, offering discounts, and conducting thorough policy reviews are actions that foster transparency and trust in the industry, rather than engaging in misleading practices.