Which term best fits the description of persuading an applicant to replace an existing policy primarily to earn higher commissions?

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

Answer: (B)

Twisting is the improper practice of persuading a policyholder to replace an existing policy with a new one mainly to earn a higher commission for the agent. The key idea is the deceptive inducement—often involving misrepresentation or withholding important facts about the current policy or the new policy—that drives the replacement. This puts the agent’s financial gain above the policyholder’s best interests and is prohibited conduct in insurance practice.

Other terms don’t capture the specific reckless motive tied to the replacement itself: churning describes forcing or encouraging policy replacements repeatedly to generate commissions over time; rebating involves giving back part of the premium or other inducements to secure a sale; sliding isn’t the term used for this scenario.