What ethical violation occurs when an insurance agent misrepresents the benefits of switching policies?

The scenario described, where an insurance agent misrepresents the benefits of switching policies, is best captured by the term "twisting." Twisting specifically refers to the unethical practice of persuading a policyholder to replace an existing policy with a new one by making misleading claims about the benefits and advantages of the new policy and the drawbacks of the existing one. This practice can lead to financial harm for the policyholder, as they may be swayed to abandon a policy that may better serve their needs.

While other terms like fraud and misrepresentation might seem relevant, twisting is distinct in its focus on the act of misleading a client to switch policies. Fraud generally involves more severe deceit for illicit gain, while misrepresentation can refer more broadly to any false statement, not necessarily tied to changing policies. Thus, the specific action of misleading clients in this context is best identified as twisting.