What action could lead to a three-year license suspension for an insurance agent?

Engaging in twisting is the correct answer because it refers to an illicit practice in the insurance industry where an agent persuades a policyholder to surrender their existing insurance policy and replace it with a new one, often for the agent’s own financial benefit rather than the client's needs. This can mislead consumers and result in a loss of coverage or benefits, violating ethical and legal standards.

Twisting harms customers, and regulatory bodies take such actions seriously, often resulting in severe penalties, including license suspensions or revocations. This action directly undermines the integrity of the insurance market and can lead to significant financial losses for the policyholder.

The other options focus on positive practices that build trust and ensure transparency in the insurance process, which are essential for upholding ethical standards in the industry and do not lead to disciplinary action. Providing clear information, offering competitive prices, and maintaining honesty in all communications are all aligned with good business ethics and proper conduct for an insurance agent.