What involves re-issuing the same policy to generate commissions?

The concept of "churning" specifically refers to the practice of an insurance agent re-issuing the same policy to generate new commissions. This process typically involves replacing an existing policy with a new one from the same insurer or a different insurer without any significant benefit or necessity for the policyholder. The primary motive behind churning is to generate profits for the agent through commissions rather than to serve the best interests of the policyholder.

Churning can result in higher premiums and reduced benefits for the insured, as they may lose accrued benefits and face new waiting periods. It is seen as an unethical practice within the insurance industry, prompting regulatory scrutiny to protect consumers from potential financial harm due to such actions.

While sliding, twisting, and coercion are also practices that involve manipulating customers within the insurance context, they have different definitions and implications that do not specifically entail the re-issuance of the same policy for the purpose of generating new commissions. Understanding churning is crucial for recognizing practices that undermine the trust placed in insurance professionals by their clients.