What unethical practice occurs when agents persuade insureds to cancel a policy in favor of another that may not be in their best interest?

Twisting is the practice that involves agents persuading insureds to cancel an existing insurance policy and switch to another policy that may not necessarily be in their best interest. This unethical behavior typically focuses on misrepresenting the advantages of the new policy while downplaying or failing to disclose the benefits and coverage of the existing policy. The intent behind twisting is often to obtain a commission from the new policy, regardless of whether it serves the client's needs adequately.

This practice can lead to potential financial loss for the insured, as they may end up with a policy that has less coverage or is more expensive, demonstrating a clear conflict between the agent's financial incentives and the client's best interests. Understanding twisting is crucial for both consumers and professionals in the insurance industry, as it highlights the importance of ethical conduct and prioritizing the needs of clients.