What is a potential consequence of twisting for the insured?

Twisting refers to the practice where an agent persuades a policyholder to replace an existing insurance policy with a new one—often with similar coverage—under misleading or fraudulent pretenses. A potential consequence of twisting for the insured is loss of coverage. This can occur if the new policy does not adequately cover the same risks as the previous one or if there is a gap during the transition period where no coverage is in place. The insured might believe they are gaining advantages with the new policy when, in reality, they could be exposing themselves to increased risks or complications if a claim arises during that period.

Additionally, when policies are swapped under these circumstances, the insured might also face problems such as pre-existing conditions not being covered in the new policy or waiting periods that delay benefits. The consequences of losing coverage can be severe, making it critical for consumers to carefully evaluate any changes to their insurance policies and to ensure that any new policy offers at least equal benefits to their prior coverage. This highlights the importance of transparency and due diligence in insurance transactions.