The act of using misrepresentation to induce an insured to terminate a policy is called?

The act of using misrepresentation to induce an insured to terminate a policy is known as twisting. This practice involves misleading an insured individual about the benefits or terms of their current policy in order to persuade them to switch to a different policy, typically one that may not be in their best interest. Twisting can harm consumers, as it may lead them to lose valuable coverage or incur unnecessary costs due to poor advice.

Subrogation refers to the process where an insurer seeks reimbursement from a third party responsible for a loss after payment has been made to the insured. A life settlement involves selling a life insurance policy to a third party for a lump sum that is less than the policy's death benefit but more than its cash surrender value. Coercion involves forcing someone to act against their will or under duress, which does not specifically involve the misrepresentation aspect that twisting entails. Therefore, the definition and implications of twisting align closely with unethical practices in insurance sales and agent conduct.