State RegulationsFL specificDifficulty 2/5
A Florida agent tells a senior that her current Medicare supplement policy 'is being discontinued and will stop paying claims next month' — a statement the agent knows is false — to persuade her to switch policies. What is this practice?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under Fla. Stat. 626.9541(1)(l),(aa), twisting is inducing, through misrepresentation, a policyowner to lapse, surrender, or replace existing coverage. Falsely telling a senior her Med Supp policy is being discontinued is a classic twisting device, and it is a first-degree misdemeanor as well as an administrative violation carrying fines. The Department of Financial Services pursues twisting cases because consumers lose incontestability and other rights they had built up under the replaced coverage.
Why the other options are wrong
- B) Knowingly false statements used to induce replacement are prohibited twisting, not permitted comparison.
- C) Rebating involves unlawful inducements to buy; this conduct is twisting, and it is criminally classified, not civil only.
- D) Sliding is adding unrequested charges or coverage; it is not permitted with consent and is not what occurred here.
Memory hook
Lie to make them switch = twisting.