State RegulationsCA specific✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
Under California's policy replacement rules, 'twisting' is best defined as:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Twisting is an abusive replacement practice in which an agent induces a policyowner to drop an existing life policy and buy a new one by misrepresenting the new policy's advantages, omitting surrender costs and the loss of old policy benefits, or making an unfair comparison. California's replacement regulations (CIC Section 10509 and following) require full disclosure and notice when a replacement occurs, and deceptive replacement is an unfair practice. Legitimate replacement is permitted when the client receives accurate information and the transaction is genuinely in the client's interest.
Why the other options are wrong
- B) An insurer's underwriting decision on a replacement application is not twisting; twisting is the agent's deceptive sales conduct.
- C) Group conversion is a contractual right under Section 10209, not a definition of twisting.
- D) Age-misstatement adjustment is a policy correction provision, unrelated to abusive replacement.
Memory hook
Twisting = swapping a policy on a lie.