Which practice involves giving false information to persuade an insured to change their policy?

Twisting refers to the unethical practice of providing misleading or false information to persuade an insured to change their existing insurance policy to a new one, often with a different insurer. This practice is considered deceptive because it may lead the insured to believe that they are receiving a better deal or superior coverage, when in fact they may not be. Twisting can harm the insured's interests by not only potentially resulting in a loss of benefits from the previous policy but also by involving unnecessary costs associated with switching policies.

The concept of twisting is critical in insurance regulation because it undermines consumer trust and can lead to significant financial loss for the insured. Regulatory bodies aim to prevent such practices by enforcing ethical standards among insurance agents and requiring full disclosure of policy details and benefits to clients. Understanding this practice helps consumers recognize the importance of transparency and honesty in insurance transactions.