Which statement correctly describes twisting in life insurance practice?

Which statement correctly describes twisting in life insurance practice?

• A. Misleading and convincing an insured to surrender, lapse, or exchange an existing policy for a different one, to the insured's detriment.
• B. A lawful process to adjust policy cash values.
• C. A method of increasing premiums with consent.
• D. A routine method of policy assignment.

Answer: (A)

Twisting is an unfair trade practice where an agent or salesperson misleads or persuades a policyowner to surrender, lapse, or exchange an existing policy for a different one, and does so to the insured’s detriment. The core idea is deception aimed at getting the policyowner to switch or terminate coverage for the agent’s or insurer’s benefit, often by misrepresenting policy benefits, costs, or consequences of the move. This is why the statement describing twisting in those terms is the best answer: it captures both the deceptive motive and the harmful outcome to the insured. In contrast, adjusting cash values (a lawful, transparent feature of some policies), increasing premiums with consent (a legitimate change with proper disclosure), or a routine policy assignment (a standard transfer of ownership) are not inherently deceptive and therefore do not define twisting.

Twisting is an unfair trade practice where an agent or salesperson misleads or persuades a policyowner to surrender, lapse, or exchange an existing policy for a different one, and does so to the insured’s detriment. The core idea is deception aimed at getting the policyowner to switch or terminate coverage for the agent’s or insurer’s benefit, often by misrepresenting policy benefits, costs, or consequences of the move.

This is why the statement describing twisting in those terms is the best answer: it captures both the deceptive motive and the harmful outcome to the insured. In contrast, adjusting cash values (a lawful, transparent feature of some policies), increasing premiums with consent (a legitimate change with proper disclosure), or a routine policy assignment (a standard transfer of ownership) are not inherently deceptive and therefore do not define twisting.