State RegulationsFL specificDifficulty 2/5
A Florida agent knowingly misstates the values and terms of a policyowner's existing life policy to persuade her to replace it with a new policy from the agent's insurer. Under Fla. Stat. 626.9541(1)(l), how is this conduct of 'twisting' punishable?
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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) and (aa), twisting or churning is a first-degree misdemeanor, and a nonwillful violation carries a fine of up to $12,500, rising to $187,500 when committed willfully and with fraud. The offense lies in the material misrepresentation used to induce the policyowner to replace existing coverage, which the DFS prosecutes as a classic unfair trade practice.
Why the other options are wrong
- B) The third-degree felony with up to $187,500 applies to forged or fraudulently altered signatures, not to twisting.
- C) Twisting carries a criminal misdemeanor classification plus fines; it is not a fine-free first offense.
- D) The misconduct is the misrepresentation itself, so punishment does not depend on the sale being completed.
Memory hook
Twist is a misdemeanor ($12,500); forging a name is a felony ($187,500).