CARD Q023
A producer uses false comparisons to persuade a client to replace an existing policy. What is the clearest description?
- Risk pooling
- A nonforfeiture election
- Twisting
- A legitimate conversion
Twisting
Twisting involves misleading inducement to replace coverage. A replacement is not automatically improper simply because it occurs.
Why each choice is right or wrong
A. Risk pooling
Incorrect. Risk pooling combines exposures; it is not misleading sales conduct.
B. A nonforfeiture election
Incorrect. A nonforfeiture election concerns retained policy value after premium discontinuance.
C. Twisting
Correct. Twisting involves misleading inducement to replace coverage. A replacement is not automatically improper simply because it occurs.
D. A legitimate conversion
Incorrect. A legitimate conversion does not depend on false comparisons.
Review the related terms
Use these lessons to revisit the concepts and try additional practice questions.