A producer in Greensboro tells a policyholder that her current accident and health policy's benefits are materially worse than they really are, using an incomplete comparison, to persuade her to surrender the policy for a new one. Under North Carolina law this conduct constitutes:

Why C is correct

Under G.S. 58-3-115 and G.S. 58-33-75, no insurer or licensee may make any written or oral statement that willfully misrepresents the terms of a policy or makes an incomplete comparison of policy terms to induce a policyholder to lapse, forfeit, surrender, exchange, or convert a policy. That practice is twisting, and it exposes the producer to civil penalties under G.S. 58-2-70 and license action.

Why the other options are wrong

• A) Rebating under G.S. 58-33-85 involves giving or offering something of value not specified in the policy as an inducement; nothing was given back here.
• B) Defamation involves false malicious statements about a competitor's financial condition; this misrepresentation concerns the client's own policy.
• D) Coercion involves compelling or restraining a person's actions through threats or pressure; no threat was made in this scenario.

Memory hook

Twisting = a twisted comparison that pressures a surrender.