What could potentially happen during the twisting of insurance policies?

Twisting of insurance policies refers to a practice where an agent persuades a policyholder to replace an existing policy with a new one, often leading to significant disadvantages for the insured. This can happen when the agent emphasizes the benefits of the new policy while downplaying or omitting details about the existing policy’s value and coverage.

The correct answer highlights a critical aspect of twisting: the risk of the insured being misled into dropping a necessary policy. When an existing policy is abandoned, the insured may lose critical benefits, coverage, or accumulated value that they would not easily regain with the new policy. In some cases, this could result in gaps in coverage or even higher costs in the long run.

The other choices, while they may seem beneficial at first glance, do not align with the negative implications of twisting. For example, even though there may be instances where the insured can be offered better coverage or more favorable terms, these situations do not address the misleading nature of the practice. Additionally, while receiving financial incentives might sound appealing, it often leads to unethical practices that primarily benefit the agent rather than the insured's actual needs. Overall, the essence of twisting is rooted in misleading the insured without fully disclosing the repercussions, which directly correlates with the