What term describes advising an individual to switch policies in a way that benefits the agent at the expense of the insured?

The term that describes advising an individual to switch policies in a manner that primarily benefits the agent, often to the detriment of the insured, is known as "twisting." This practice involves misleading or persuading an insured person to replace their existing insurance policy with a new one, based on false or misleading representations about the benefits or features of the new policy. The agent usually benefits from the commissions associated with the new policy, while the insured may end up with less coverage or higher costs.

Twisting is a prohibited practice because it undermines the trust that clients place in their agents and can lead to financial harm for the insured. This unethical behavior is taken seriously in the insurance industry, and regulatory bodies often impose strict penalties on agents who engage in such practices.

Other terms might refer to similar concepts but have different implications. For example, "churning" typically involves the practice of an agent persuading a policyholder to cancel an existing policy and replace it with a new one that may not provide significant additional benefits, usually to generate new commissions rather than benefiting the client. Thus, while twisting and churning are related, twisting specifically focuses on the deceptive switching of policies that benefits the agent at the insured’s expense.