What does twisting refer to in insurance practices?

Twisting in insurance practices specifically refers to the act of using misleading or deceptive information to induce a policyholder to switch from one insurance policy to another. This unethical practice can involve misrepresenting the terms, conditions, or benefits of a new policy compared to the existing one, leading the customer to make decisions based on false or incomplete information.

The core of twisting is grounded in the intent to persuade a consumer to change their insurance coverage by distorting the truth, often resulting in financial disadvantage for the customer. This behavior not only undermines the trust between the insurer and the client but can also lead to legal consequences for the agents involved.

In contrast, selling multiple policies, encouraging policy upgrades with valid reasons, or helping customers understand their policies do not fit the definition of twisting, as these actions can be legitimate practices when conducted transparently and ethically.