What occurs when an agent convinces a policyowner to part with an existing policy that was actually suitable for them?

When an agent convinces a policyowner to relinquish an existing policy that is genuinely suitable for them, this practice is referred to as twisting. Twisting occurs when an agent misrepresents or omits facts about a policy to persuade the policyowner to exchange it for another policy, usually for the agent's financial gain rather than the best interests of the policyowner. This unethical practice can lead to disadvantages for the consumer, such as increased costs, loss of benefits, or unanticipated risks associated with the new policy. Understanding twisting is crucial for agents, as it highlights the importance of ethical conduct in the selling process and ensuring that clients make informed decisions based on their actual needs and circumstances.