What does "twisting" refer to in insurance practice?

In the context of insurance practice, "twisting" refers specifically to the act of convincing a policyholder to switch from one insurance policy to another, often to the detriment of the customer. This practice typically involves an agent convincing the customer that the new policy offers better coverage or savings, while failing to adequately disclose the disadvantages, such as higher premiums, reduced coverage, or a longer waiting period for benefits.

Twisting is considered unethical and is often illegal because it can mislead consumers, leading them to make decisions that are not in their best interest. Insurance regulators aim to protect consumers from such practices, emphasizing the need for transparency and honesty in all dealings related to insurance policies. This highlights the importance of proper conduct among insurance agents and the ethical responsibility they bear in advising clients about their insurance choices.