Using an incomplete comparison of insurance policies to persuade a client is known as?

Study for the Florida 2-20 Statutes Exam. Use flashcards and multiple choice questions with hints and explanations. Prepare effectively!

Using an incomplete comparison of insurance policies to persuade a client is termed "twisting." This practice involves presenting a misleading representation of one policy to encourage a client to surrender or replace an existing policy for another, often with less favorable terms. Twisting is somewhat deceptive as it relies on only part of the information or a biased comparison to influence the client’s decision.

In the context of insurance, twisting can have serious implications because it may lead to clients making uninformed decisions that are not in their best financial interest. Regulatory bodies closely monitor such practices to protect consumers from potential exploitation that can arise from incomplete or misleading information.

While misrepresentation involves providing false information about a policy, coercion refers to pressuring someone into making a decision, and rebating typically involves offering money or discounts to entice customers, none of these accurately capture the nuances of making incomplete comparisons to persuade clients.

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