What is twisting in the insurance context?

Twisting refers to the unethical practice in the insurance industry where an agent or broker makes misleading statements or representations to persuade a policyholder to switch from one insurance policy to another. This often involves exaggerating the advantages of the new policy while downplaying or omitting important information about the current policy. Such actions can harm the insured by causing them to lose benefits or incur more costs than they would have otherwise.

The intent behind twisting is typically to benefit the agent through commissions earned from placing a new policy, rather than serving the best interests of the insured. This practice is prohibited under various state laws, including those in Florida, as it undermines the integrity of the insurance market and can lead to consumer distrust. The focus in this context is on the misleading nature of the statements made during the process of switching policies, highlighting the unethical conduct that characterizes twisting.