Which term describes informing an applicant that a specific ancillary coverage is required by law when such a coverage is not required by law?

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

Answer: (D)

Sliding describes the practice of telling an applicant that a specific ancillary coverage is required by law when it isn’t. This deceptive tactic relies on misrepresenting the law to pressure the consumer into purchasing unnecessary coverage, often to boost commissions or premiums. It’s illegal and falls under unfair methods of competition and misrepresentation in insurance practice. The other terms refer to different improper actions: churning involves excessive policy replacements to generate commissions, rebating is returning part of the premium to influence a purchase, and twisting is misrepresenting or unfairly pressuring to replace a policy. The essence here is the false claim of a legal requirement to sell more coverage.