Definition - What does Twisting mean?

Twisting occurs when an insurance agent tricks a life insurance policyholder into getting rid of his or her existing life insurance policy and buying a new policy from the agent. In order for the act to qualify as twisting, the agent must use misleading or false information to get the person to switch.

Twisting is a crime in most of the United States.

Insuranceopedia explains Twisting

Insurance agents who engage in twisting usually do so because they get paid a commission for the sale of a life insurance policy. Not only is twisting misleading, but ending a life insurance policy prematurely can waste the policyholder's time and money, since holding the policy for a long time can grow its value.

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