What action does 'twisting' refer to in the context of insurance?

In the context of insurance, 'twisting' refers to the practice of making misleading comparisons between insurance policies to encourage a client to switch from one policy to another. This involves presenting information in a way that may distort the reality of the benefits and coverages provided by the original policy versus the new policy. Misleading representations can create a false perception of the new policy being superior, often resulting in clients not being fully informed about what they are giving up or the true costs involved in the switch.

Understanding 'twisting' is crucial for maintaining ethical standards in the insurance industry. It highlights the importance of transparency and honesty when dealing with clients who are considering changes to their insurance coverage. Recognizing this terminology helps producers comprehensively evaluate and present insurance products while adhering to regulations that protect consumers.