Which statement best describes twisting in life insurance practice?

• A. Misleading and convincing an insured to surrender, lapse, or exchange an existing policy for a different one, to the insured's detriment.
• B. Informing the insured about all policy options.
• C. Providing complete and accurate policy comparisons.
• D. Recommending a policy without considering the insured's financial situation.

Answer: (A)

Twisting is an improper life insurance sales tactic where the agent misleads or pressures the insured to surrender, lapse, or exchange an existing policy for a new one, typically to the insured’s detriment. This can involve giving misleading information, omitting important details, or shaping a comparison in a way that makes the new policy seem more attractive than it truly is, even when it isn’t in the policyholder’s best interest. Regulators ban twisting because it hurts consumers and damages trust in the industry. In contrast, informing about all policy options, providing complete and accurate comparisons, and considering the insured’s financial situation when making a recommendation are legitimate, ethical practices that help the client make a sound choice.