Final answer:
The agent who makes misleading statements that lead to the termination of an existing insurance policy so that a new policy with another insurer can be taken out has committed twisting.
Step-by-step explanation:
The agent who makes misleading statements that lead to the termination of an existing insurance policy so that a new policy with another insurer can be taken out has committed twisting.
Twisting is a fraudulent practice in the insurance industry where an agent uses deceptive tactics to convince policyholders to cancel their existing policies and replace them with new policies from a different insurer. The agent may use false information or misleading statements to make the policyholder believe that the new policy is more beneficial or offers better coverage.
Twisting is illegal because it harms both the policyholder and the insurance company. It often results in financial losses for the insurance company and may leave the policyholder with inadequate coverage or higher premiums.