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

The term "twisting" in insurance practices refers to a form of unethical behavior where an agent misrepresents a policyholder's current insurance situation in order to persuade them to make changes to their existing policy, often by switching to a new policy that may not be in their best interest. This action is typically motivated by the agent’s desire to earn a commission from the new policy, rather than prioritizing the best outcome for the policyholder.

Twisting is considered a serious violation of ethical standards within the insurance industry, as it exploits the trust that clients place in their agents. It can result in financial losses for the policyholders who may end up with inferior coverage or higher premiums. Understanding this practice is crucial for agents, as it underscores the importance of acting in the best interest of clients and maintaining integrity in all sales practices.