To win a sale, a producer exaggerates the benefits of a new health policy and conceals its limitations while urging the client to let an existing policy lapse. Which practice is this?

Why B is correct

Twisting is the practice of inducing a policyholder to lapse, surrender, or replace an existing policy by misrepresenting the new policy's benefits or the old one's terms. The New Jersey Department of Banking and Insurance polices twisting as an unfair marketing practice because the misrepresentations are made to generate a sale rather than to serve the client. Producers must present comparisons honestly, even when replacement is genuinely suitable.

Why the other options are wrong

• A) Rebating requires offering part of the commission or another inducement; nothing of value was offered here.
• C) Defamation involves false statements about a competing insurer, not misstatements about the producer's own policy.
• D) False advertising concerns misleading messages to the general public, while this conduct targeted one client's replacement decision.

Memory hook

Twisting = misrepresenting to make an old policy die and a new one replace it.