Definition of "Twisting"

Unfair trade practice, in insurance, whereby an agent or broker attempts to persuade a life insurance policyholder through misrepresentation to cancel one policy and buy a new one. Some states have laws requiring full disclosure of relevant comparative information about existing and proposed policies by an agent trying to convince a customer to switch policies. These laws may provide for notification of the insurance company that issued the existing policy to give it an opportunity to respond to the agent's proposal.

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