Life Insurance Basics
What is life insurance twisting?
Life insurance twisting is the illegal practice of inducing a policyholder to lapse, surrender, or convert an existing life insurance policy in order to purchase a new policy, when the replacement is not in the policyholder's best interest. Twisting is prohibited in all states.
Key Points
- Twisting: illegal practice of inducing unsuitable policy replacement
- Prohibited in all states
- Replacement must be in the policyholder's best interest
- Agent must provide a replacement notice for all replacements
- Report suspected twisting to your state insurance department