Which of the following would be considered an Unfair Trade Practice?

The concept of Unfair Trade Practices encompasses various deceptive or unethical practices in the insurance industry that can harm consumers and undermine fair competition. Each of the listed practices—twisting, rebating, and coercion—falls under this umbrella due to their ability to deceive policyholders or manipulate market conditions.

Twisting refers to the practice where an agent persuades a policyholder to lapse or surrender an existing policy in order to purchase a new one, often misrepresenting the benefits of the new policy while downplaying the drawbacks of the current one. This can mislead consumers, causing them to make decisions that are not in their best interest.

Rebating involves offering a portion of the commission or premium as an incentive to the policyholder, which can distort competition and violate regulations meant to ensure fair pricing in the market. It can create an uneven playing field where some agents can gain an advantage by providing illegal monetary incentives.

Coercion occurs when an agent pressures or forces a potential client to buy insurance, often threatening negative consequences if the purchase is not made. This undermines the voluntary nature of the insurance sales process and can lead to consumer dissatisfaction and a lack of informed choice.

Since twisting, rebating, and coercion each violate ethical standards and regulatory