Alabama Personal Lines Practice Exam

The practice of providing misleading comparisons of insurance policies to induce a change is known as twisting. This involves persuading a policyholder to switch policies by presenting false or deceptive information regarding the benefits or features of the new insurance policy compared to the existing one. Twisting is considered unethical and is often subject to regulatory scrutiny because it can lead to financial harm for the policyholder, who may end up with inadequate coverage or lose valuable benefits.

In contrast, churning refers to the practice of an agent encouraging a client to replace an insurance policy primarily for the purpose of generating a commission for the agent, rather than for the client’s benefit. Falsifying and misrepresentation involve making false statements or misrepresenting facts, which can relate to broader deceptive practices but are not specific to the act of misleading comparisons inherent in twisting.