Illinois Life Producer State-designated Practice Exam

Which of the following is considered twisting?

1. Encouraging clients to buy more policies

2. Misleading clients about policy benefits

3. Illustrating policy returns inaccurately

4. Switching clients from one insurer to another without notifying them

The correct answer is: Misleading clients about policy benefits

Twisting is a practice considered unethical and involves misleading clients into thinking they will benefit from changing their insurance policies when, in fact, they may not. This can take the form of providing false or misleading information about policy benefits, creating a false sense of security or greater value that does not actually exist. By misrepresenting the terms or advantages of a new policy compared to the old one, an agent can persuade a client to make a change that is not in their best interest. Understanding this definition of twisting clarifies why misleading clients about policy benefits is the correct answer in this context. It emphasizes the importance of transparent and honest communication in the insurance industry, where client trust and integrity are paramount.