State RegulationsFL specificDifficulty 2/5
To discourage a competitor's client, a Florida agent tells a policyowner that her current insurer can cancel her policy at any time without notice - which is false - and the owner simply lets the policy lapse. Under Fla. Stat. 626.9541(1)(l),(aa), the agent's conduct is
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Under Fla. Stat. 626.9541(1)(l),(aa), twisting consists of misrepresentations that induce a policyowner to lapse, surrender, or replace an existing policy. The statutory wrong is complete when the false statement dislodges the existing coverage - a replacement sale is not required - so inducing a lapse through lies is twisting, exposing the agent to misdemeanor charges and fines.
Why the other options are wrong
- A) No sale is needed: twisting is complete when misrepresentation causes an existing policy to lapse or be surrendered.
- B) Concealment is the knowing withholding of material facts, typically by an applicant or insured - not an agent's false advice.
- C) Churning uses an existing policy's own values to buy more coverage within it; nothing was purchased here.
Memory hook
Twisting can kill a policy without selling one.