What does "twisting" refer to in the context of insurance?

In the context of insurance, "twisting" refers specifically to the unethical practice of inducing policyholders to switch from one insurance policy to another, often through misleading or deceptive means. This act typically involves persuading individuals to cancel their existing coverage in favor of a new plan, which might not provide the same benefits or be in the policyholder's best interest. Agents or brokers who engage in twisting may highlight superficial benefits while downplaying significant drawbacks or the continuity of coverage.

This practice is concerning because it can lead to policyholders losing valuable coverage, experiencing gaps in insurance protection, or incurring additional costs that they may not have fully understood. Regulators have guidelines to prevent twisting, as it undermines the consumer's trust in insurance providers and can ultimately result in financial harm to individuals.

The other options, such as manipulating policy terms, forfeiting policy benefits, and negotiating premium rates, describe different aspects of insurance practices but do not capture the specific meaning of twisting, which centers on the act of switching policies in a misleading manner.