Which practice involves Enticing a policyholder to give up a policy for a new one?

The practice referred to in the question is known as twisting, which involves persuading a policyholder to surrender or cancel an existing insurance policy in order to take out a new one, often with another insurer. This is done under misleading or deceptive circumstances, such as misrepresenting the benefits of the new policy compared to the existing one. Twisting is considered unethical and is often illegal since it can harm the policyholder and undermine trust in the insurance industry.

It is crucial for agents to maintain ethical standards in their practices, as twisting can lead to significant penalties and damage an agent's reputation. The focus of this practice is on misleading the policyholder rather than providing genuine customer service or advocating for the client’s best interests. Thus, the correct identification of twisting highlights the importance of ethical behavior in insurance transactions.