Twisting in insurance practices is defined as which of the following?

Twisting in insurance practices is defined as which of the following?

• A. Replacing a policy with misleading information
• B. Renewing without client approval
• C. Lowering premiums
• D. Selling policies online

Answer: (A)

Twisting is an unethical practice where a producer persuades a client to replace an existing policy by giving misleading or incomplete information about the new policy, often to earn a new commission. The focus is on deception to induce replacement, not on normal policy actions. This option is the best fit because it directly describes replacing a policy with misleading information, which is the hallmark of twisting. Other choices don’t capture the deceptive replacement aspect: renewing without client approval is a renewal control issue, lowering premiums can be legitimate if properly disclosed, and selling policies online is just how products are distributed.

Twisting is an unethical practice where a producer persuades a client to replace an existing policy by giving misleading or incomplete information about the new policy, often to earn a new commission. The focus is on deception to induce replacement, not on normal policy actions.

This option is the best fit because it directly describes replacing a policy with misleading information, which is the hallmark of twisting. Other choices don’t capture the deceptive replacement aspect: renewing without client approval is a renewal control issue, lowering premiums can be legitimate if properly disclosed, and selling policies online is just how products are distributed.