What does the term "twisting" refer to in insurance?

The term "twisting" in insurance specifically refers to a prohibited practice where an agent misrepresents the benefits or features of one insurance policy to persuade a policyholder to lapse or switch to another policy. This misrepresentation can lead clients to believe they are making an informed decision when, in fact, they may be receiving misleading information. Twisting is considered unethical because it undermines the trust that clients place in agents and can result in financial harm to consumers who may not fully understand the implications of changing policies based on incorrect information.

While there are various practices and concepts in the insurance industry that involve policy changes, "twisting" distinctly highlights the unethical aspect of misrepresentation. This is important for maintaining professionalism and protecting consumers in the marketplace, ensuring that clients are fully informed and not misled by their agents.