Which of the following best describes 'twisting' in insurance?

Twisting in insurance refers specifically to the practice of convincing a policyholder to replace an existing life insurance policy with a new one based on misleading information or misrepresentation about the benefits or coverage of the new policy. This unethical practice is of particular concern because it can lead to financial harm for the insured, who might end up with less coverage, higher costs, or both.

In contrast, changing a beneficiary is a routine and legitimate action taken by policyholders, while offering lower premiums on similar policies could simply reflect legitimate competition in the market rather than a deceitful act. Filling in false information on an application, although unethical, does not necessarily relate to the concept of twisting, which focuses specifically on the context of misleading a client to alter their existing insurance coverage.