What term describes using an existing life insurance policy's cash value to purchase another policy for the sole purpose of earning additional commissions?

The term that describes the practice of using an existing life insurance policy's cash value to purchase another policy, specifically for the purpose of generating additional commissions, is known as churning. This practice involves a policyholder being persuaded or incentivized to cash in a current insurance policy to buy a new one, which typically leads to unnecessary expenses and may not provide any real benefit to the policyholder.

Churning is often viewed negatively within the insurance industry because it prioritizes the agent's financial gain over the client's best interests. This misalignment can result in the loss of benefits from the original policy, reduced coverage, and longer waiting periods on new benefits in the newly purchased policy.

The other terms listed relate to different practices in the insurance world. Twisting, for example, involves misleading a policyholder to purchase a new policy from a different insurer, which may not be in their best interest. Concealment refers to the act of hiding relevant information from the insurer to obtain coverage or benefits. Pyramiding typically involves using multiple policies in a way that may leverage benefits fraudulently. Each of these terms describes distinct behaviors that can be problematic in the context of insurance sales, but churning specifically addresses the misuse of cash value from one policy to