Twisting is BEST defined as?

Twisting is best defined as making a false written or oral statement for the purpose of inducing a policyholder to replace an existing insurance policy with a new one, which may not be in the best interest of the policyholder. This practice is considered unethical because it misleads consumers about the benefits, terms, or conditions of the new policy, often creating financial disadvantages for them. In essence, twisting involves misrepresentation, where an agent or broker persuades a customer to switch policies based on incorrect or misleading information, typically for personal gain through commissions.

The knowledge surrounding this definition is vital for understanding and upholding ethical standards within the insurance industry, protecting consumers from deceptive practices. This aligns with regulatory measures in South Carolina and other jurisdictions aimed at safeguarding policyholders' interests. Awareness of twisting helps maintain fairness in the marketplace by discouraging harmful behaviors that could lead to consumer exploitation.