Inducing a policy lapse or surrender to purchase a similar policy elsewhere is known as what?

Inducing a policy lapse or surrender to purchase a similar policy elsewhere is known as what?

• A. Twisting
• B. Sliding
• C. Defamation
• D. False Advertising

Answer: (A)

Twisting is the unethical practice of persuading a policyowner to lapse, surrender, or terminate an existing policy so they can buy a new policy, usually to generate a new commission for the agent. This harms the client because the new policyoften comes with unnecessary charges, loss of guarantees, or worse overall value, and the decision is driven by the agent’s financial incentive rather than the client’s best interest. In other words, the focus is on replacing coverage through deception or pressure rather than genuine need. The other terms describe different misconduct. Sliding relates to deceptive tactics to obtain replacement business, but twisting is specifically about inducing a lapse or surrender to replace a policy. Defamation involves false statements that harm someone’s reputation, and false advertising involves deceptive marketing claims about a policy or insurer.

Twisting is the unethical practice of persuading a policyowner to lapse, surrender, or terminate an existing policy so they can buy a new policy, usually to generate a new commission for the agent. This harms the client because the new policyoften comes with unnecessary charges, loss of guarantees, or worse overall value, and the decision is driven by the agent’s financial incentive rather than the client’s best interest. In other words, the focus is on replacing coverage through deception or pressure rather than genuine need.

The other terms describe different misconduct. Sliding relates to deceptive tactics to obtain replacement business, but twisting is specifically about inducing a lapse or surrender to replace a policy. Defamation involves false statements that harm someone’s reputation, and false advertising involves deceptive marketing claims about a policy or insurer.