What is the act of twisting in relation to insurance?

The act of twisting in relation to insurance refers to making misleading statements or comparisons to induce someone to take out an insurance policy. This unethical practice often involves a salesperson convincing a client to replace an existing policy with a new one by providing inaccurate or deceptive information about the benefits of the new policy, while downplaying the advantages of the current one. This can lead consumers to make decisions based on false impressions, which can result in financial harm or inadequate coverage.

Understanding twisting is crucial as it highlights the importance of transparency and honesty in insurance sales. It emphasizes the need for agents to adhere to ethical standards, ensuring that clients make informed decisions based on accurate information rather than misleading comparisons or exaggerations. Maintaining integrity in the selling process protects both the consumer and the reputation of the insurance industry.