A Georgia producer, wanting a new commission, tells a policyholder that the policyholder's current policy is worthless and persuades the policyholder to surrender it and buy a similar policy from another insurer, based on those false statements. This practice is:

Why C is correct

Under O.C.G.A. § 33-6-4(b)(2), the statutory hook for twisting is making any misrepresentation to induce a policyholder to lapse, forfeit, or surrender a policy. Falsely telling the policyholder the current policy is worthless in order to trigger a surrender and repurchase fits squarely within that definition, and the fact that the replacement comes from a different insurer is typical of twisting.

Why the other options are wrong

• A) Rebating involves giving or offering valuable consideration as an inducement to purchase, not misrepresenting an existing policy's value.
• B) Churning describes using cash values to buy additional coverage from the same insurer; here the false statements induce a surrender for a new policy from another insurer.
• D) Coercion involves force or intimidation in insurance transactions, not deception that induces a surrender.

Memory hook

False words that push a surrender = twisting.