Which scenario best illustrates the concept of twisiting?

Twisting refers to the unethical practice of persuading a policyholder to cancel or alter their existing insurance policy in favor of a new one, often with the intention of earning a commission. This practice usually involves presenting misleading information that downplays the merits of the original policy or exaggerates the benefits of the new one.

In the scenario where a policyholder is persuaded to drop a current coverage plan for a cheaper option, it exemplifies twisting effectively. The policyholder may be convinced to switch without a full understanding of the potential risks and shortcomings of the new plan. This often results in reduced coverage or loss of important benefits that were present in the original policy, solely for the sake of a lower premium.

Other scenarios do not demonstrate twisting as clearly. Advising a client to enhance their existing policy suggests a positive and beneficial action rather than misleading the client. Introducing a new policy to a satisfied customer does not involve deception around their current coverage, and offering additional benefits for loyalty is a practice that rewards customer retention without compromising existing policies.