What is the term for the unethical practice of inducing an insured to surrender an existing policy through misrepresentation?

The term for the unethical practice of inducing an insured to surrender an existing policy through misrepresentation is known as "twisting." This practice occurs when agents or brokers encourage a policyholder to terminate their current insurance policy in order to take out a new one, often by providing false or misleading information about the benefits of the new policy compared to the existing one.

Twisting is considered unethical because it may lead the insured to make a decision that is not in their best financial interest, often resulting in a loss of benefits or higher costs. It undermines the trust relationship between the insured and the insurance professional, as the primary motive behind twisting is often financial gain for the agent rather than the welfare of the insured.

The other terms mentioned are distinct from twisting; for instance, redlining refers to the discriminatory practice of denying services based on the racial or ethnic composition of a neighborhood. Churning involves the practice of repeatedly replacing insurance policies to generate commissions for agents without providing any real benefit to the insured. Rebating pertains to giving a portion of the premium back to the insured, which is often considered illegal in many states as it can create unfair competition. Each of these terms highlights different unethical behaviors within the insurance industry, but twisting specifically targets the act of misleading