Which scenario best illustrates the concept of twisiting?

The scenario that best illustrates the concept of twisting involves a policyholder being persuaded to drop their existing coverage in favor of a cheaper plan. Twisting refers specifically to the unethical practice in insurance where a financial representative convinces a policyholder to cancel their existing policy and switch to another one, often misleading them about the benefits and differences. This can lead to a lapse in coverage or denial of claims due to the new policy's exclusions or waiting periods, potentially putting the client at a disadvantage.

In contrast, enhancing an existing policy typically involves increasing coverage or benefits without dropping the current plan, which is a positive action for the policyholder. Introducing a new policy to a satisfied customer suggests a continuation of a beneficial relationship rather than a misleading action to replace a policy. Similarly, providing additional benefits for loyalty indicates a reward for continued business rather than the harmful practice of twisting, which might involve misrepresentation of information to switch policies.