Twisting, also known as churning or replacement, refers to the practice of convincing a policyholder to cancel their existing insurance policy and replace it with a new one, often for the benefit of the insurance agent or broker. This practice can be unethical and may not be in the best interest of the policyholder.

In the insurance industry, twisting is often motivated by the desire to generate commissions for the agent or broker. An insurance agent or broker may try to convince a policyholder to switch to a new policy by misleading them about the terms or benefits of the new policy, or by misrepresenting the terms or benefits of their existing policy.

Twisting can be harmful to policyholders because it can result in them paying higher premiums for coverage that may not be as comprehensive as their existing policy. It can also result in policyholders losing any accumulated benefits, such as cash value in a permanent life insurance policy, if they cancel their existing policy.

To protect consumers from twisting, many states have laws that regulate the practice and require insurance agents and brokers to disclose any potential conflicts of interest when recommending a policy change to a policyholder. Policyholders should carefully review their insurance needs and options before making any changes to their coverage and should seek independent advice if they have any concerns about their existing policy or a recommendation to switch to a new one.