Which entity may lose their license if found guilty of twisting?

The entity that may lose their license if found guilty of twisting is producers. Twisting refers to the unethical practice in which a producer misrepresents or exaggerates the benefits of one insurance policy over another to persuade a policyholder to switch insurers. This practice is considered a form of misconduct, as it can lead to policyholders being misinformed and potentially incurring financial losses due to a change in insurance coverage that may not be in their best interest.

Producers are held to high ethical standards in the insurance industry because they directly influence the decisions that policyholders make. If found guilty of twisting, producers face severe repercussions, including the potential revocation of their insurance licenses. This consequence serves to uphold the integrity of the insurance market and to protect consumers from deceptive practices.

While insurers, policyholders, and adjusters play various roles in the insurance process, they are not typically held accountable for twisting in the same manner as producers. Insurers may be held liable in other contexts for unfair practices but do not lose their licenses for twisting; policyholders are generally the victims of such practices; and adjusters are responsible for processing claims rather than selling policies. Thus, it is producers who face disciplinary actions, including license revocation, for engaging in twisting activities