What is the term for knowingly making misleading representations of any insurance policy to induce a person to cancel their insurance?

The term for knowingly making misleading representations of any insurance policy to induce a person to cancel their insurance is "twisting." Twisting refers specifically to the unethical practice where an insurance agent persuades a policyholder to switch from one insurer to another, often by presenting false or misleading information about their existing policy. This can lead to an adverse impact on the policyholder, who may not fully understand the consequences of their decision or enjoy the same level of coverage they had previously.

In the context of insurance laws, twisting is a prohibited practice, as it breaches the trust that consumers should have in their agents and the insurance industry. By engaging in twisting, the agent prioritizes their commission over the person’s best interests, making it a serious ethical violation within the field.

Understanding this concept is essential for anyone participating in the insurance business, as it highlights the need for transparency and honesty in client relationships.