What is the term for a form of misrepresentation where an agent convinces the insured to cancel or switch policies against their best interest?

The term for the form of misrepresentation described in the question is known as "twisting." This occurs when an insurance agent persuades a policyholder to cancel their existing insurance policy or switch to a different one, often under misleading pretenses or by presenting the new policy as better than it actually is. The underlying issue is that the agent may have ulterior motives, such as earning a commission from the new policy, which may not serve the best interests of the insured.

Understanding twisting is important because it highlights the ethical responsibility of agents to act in the best interests of their clients. Agents should provide accurate information about policy terms and not mislead clients into actions that could negatively affect their coverage or financial security. This practice is considered unethical and is usually a violation of insurance regulations, making it a serious concern within the industry.

In contrast, the other terms listed refer to different concepts: sliding typically involves the agent adding coverage or benefits without the insured’s consent, fraud involves intentional deception for personal gain, and churning refers to the practice of replacing existing policies with new ones solely for the sake of commissions, regardless of necessity. Each of these terms describes different unethical practices, but twisting specifically aligns with the scenario of misrepresentation to switch policies against the insured