What defines twisting in an insurance context?

Twisting in the insurance context refers specifically to the practice of inducing an insured to switch policies in a manner that results in a disadvantage for that insured. This often means that the new policy has worse coverage, higher premiums, or does not provide the same benefits as the original policy. The intent behind twisting is usually to benefit the agent or broker, often through commissions or bonuses, rather than the best interest of the insured.

Understanding twisting is crucial as it emphasizes the ethical responsibility of insurance agents to prioritize their clients' needs and well-being over personal financial gains. It involves a deceptive practice that undermines the trustworthiness of the insurance industry. Therefore, recognizing this behavior is essential for both consumers and professionals in ensuring fair and transparent business practices.