What is the term for the act of making misleading statements to compel replacement of life insurance?

The act of making misleading statements to compel the replacement of life insurance is known as twisting. Twisting occurs when an insurance agent persuades a policyholder to switch their existing life insurance policy for a new one, often by providing false or deceptive information about the advantages of the new policy or the disadvantages of the current one. This practice is considered unethical and is illegal in many jurisdictions, including Indiana.

Twisting can harm policyholders by causing them to lose valuable benefits or incur additional costs associated with the new policy, without necessarily improving their coverage or overall financial situation. Regulations exist to protect consumers from such practices, reinforcing the importance of ethical sales practices in the insurance industry.