A producer in Atlanta persuades a client to let her existing life policy lapse by falsely telling her the policy's benefits have 'expired,' so the client will buy a new policy from him and he can earn a fresh first-year commission. This practice is:

Why B is correct

Under O.C.G.A. § 33-6-4(b)(2), making any misrepresentation to induce a policyholder to lapse, forfeit, or surrender a policy is the Georgia statutory hook for twisting. The producer's false statement caused the lapse so a new sale could generate another commission, which is twisting and subject to Insurance Commissioner action.

Why the other options are wrong

• A) Churning is using an existing policy's cash values to buy more coverage from the same insurer; here an outside sale was induced by a false statement, which is twisting under O.C.G.A. § 33-6-4(b)(2).
• C) Defamation is a false statement about a competitor insurer's financial condition under O.C.G.A. § 33-6-4(b)(3); the client's own policy, not a rival insurer, was the subject.
• D) Controlled business concerns coverage on the licensee's own interests and is unrelated to inducing a lapse under O.C.G.A. § 33-6-4(b)(2).

Memory hook

Twist = talk someone out of a policy with lies; churn = milk the cash value with the same insurer.