What is a common practice that can be identified as “churning”?

Churning is a practice where an insurance agent or broker encourages a client to switch from one insurance policy to another, primarily to generate additional commissions for themselves, rather than for the benefit of the client. This often occurs without a legitimate need or without considering whether the new policy truly offers better coverage or value for the client.

In this context, switching policies to gain commissions accurately captures the essence of churning, as it focuses on the financial incentive for the agent rather than the client's best interests. When an agent frequently persuades clients to replace one policy with another, it can lead to unnecessary costs for the client, including new commissions, fees, and potential loss of benefits associated with the original policy.

The other options do not encapsulate the core concept of churning. Changing insurance companies frequently may suggest client behavior but does not directly implicate the agent’s unethical practice. Over-representing a policy's value can be a form of misrepresentation or fraud, but it does not specifically describe the act of switching policies for commissions. Thus, the identification of switching policies to gain commissions aligns perfectly with the definition of churning in the insurance industry.