Which practice misleads customers by claiming a coverage is legally required to induce a sale?

• A. Churning
• B. Rebating
• C. Twisting
• D. Sliding

Answer: (D)

Understand that this question targets deceptive sales tactics used to push insurance products. The best answer is sliding because it specifically involves an agent telling you that a coverage is required by law in order to secure the sale, even though no such legal requirement exists. This misrepresentation is designed to pressure you into buying a policy you might not need.

Churning focuses on pushing more policies to generate commissions, not on claiming a legal requirement. Twisting involves misrepresenting or substituting a policy to replace another, not about stating a legal obligation. Rebating involves giving back part of the premium to induce a sale, which is a different improper incentive. The distinctive element of sliding is the claim that a legally required coverage exists to induce the purchase.