California Insurance Code & EthicsQuestion 48 of 315
An agent convinces a policyholder to surrender an existing whole life policy and buy a new one, primarily to earn a fresh first-year commission, even though the change disadvantages the client. This practice is known as:
a.Commingling
b.Sliding
c.Rebating
d.Twisting
Explanation
Twisting is inducing a policyholder to lapse, surrender, or replace a policy through misrepresentation or incomplete comparison. When done repeatedly within the same insurer's book of business it is called churning. Both are prohibited by California law.
Law Reference: Cal. Ins. Code §781Practice all 315 questions free — no signup required.
Related questions on this topic
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Sen Lin, PrepPass Founder · Verified against California Life & Health Insurance License Exam · How we review
Reviewed by John Zihao Zhang — California-Licensed Life Insurance Agent (CA Dept. of Insurance License #4396095 — verify)