What does 'twisting' refer to in the context of insurance practices?

Twisting in the context of insurance practices refers to the fraudulent comparison of policies and often involves misleading information that encourages a policyholder to replace their existing policy with a new one, which may not be in their best interest. This unethical practice can include exaggerating the benefits of a new policy or minimizing the advantages of the current one, and it can result in financial loss or inadequate coverage for the insured.

In addition to being a deceptive practice, twisting is also illegal in many jurisdictions, including New Jersey. It is designed to exploit the policyholder's trust and lack of understanding of the true value of their current coverage, making it vital for consumers to be informed and approach comparisons with scrutiny. Understanding how twisting operates helps both insurance producers and consumers recognize the importance of ethical sales practices and the need for transparency in the insurance marketplace.