The Consequences of Twisting

Oct 13, 2025 by wbrum.org 120 views

When it comes to selling insurance policies, insurance agents and brokers have a responsibility to provide accurate and unbiased information to prospective insureds. However, some unscrupulous agents may resort to using high-pressure sales tactics or exaggerations to convince customers to buy a policy. This practice is known as twisting, and it's a serious issue that can have severe consequences for both the customer and the insurance industry as a whole.

What is Twisting?

Twisting is a type of insurance sales practice where an agent or broker exaggerates or misrepresents the benefits of an insurance policy to convince a customer to buy it. This can include making false claims about the policy's coverage, benefits, or exclusions, or using high-pressure sales tactics to create a sense of urgency or fear. The goal of twisting is to make the customer feel like they need the policy, even if it's not in their best interest.

The Consequences of Twisting

Twisting can have serious consequences for both the customer and the insurance industry. For the customer, twisting can lead to:

Financial loss: If a customer buys a policy based on false information, they may end up paying premiums for a policy that doesn't provide the coverage they need.
Emotional distress: Twisting can be a stressful and anxiety-provoking experience for customers, especially if they feel like they've been misled or taken advantage of.
Loss of trust: If a customer feels like they've been twisted, they may lose trust in the insurance industry as a whole and be less likely to buy insurance in the future.

For the insurance industry, twisting can lead to:

Reputational damage: If twisting becomes widespread, it can damage the reputation of the insurance industry as a whole and make it harder for honest agents and brokers to sell policies.
Regulatory action: Insurance regulators may take action against agents and brokers who engage in twisting, which can result in fines, penalties, or even license revocation.
Increased costs: Twisting can lead to increased costs for the insurance industry, as customers may file more claims or seek refunds for policies that don't provide the coverage they need.

How to Identify Twisting

So, how can you identify twisting? Here are some common signs:

High-pressure sales tactics: If an agent or broker is pushing you to buy a policy quickly, without giving you time to think or research, it may be a sign of twisting.
Exaggerated claims: If an agent or broker is making exaggerated claims about the policy's benefits or coverage, it may be a sign of twisting.
Misrepresentation of policy details: If an agent or broker is misrepresenting the policy's details, such as the coverage, exclusions, or premiums, it may be a sign of twisting.
Lack of transparency: If an agent or broker is not transparent about the policy's terms and conditions, it may be a sign of twisting.

What to Do If You've Been Twisted

If you think you've been twisted by an insurance agent or broker, here are some steps you can take:

Seek clarification: Ask the agent or broker to clarify any questions or concerns you have about the policy.
Get a second opinion: Consider getting a second opinion from another agent or broker to verify the policy's details.
File a complaint: If you feel like you've been twisted, you can file a complaint with the insurance regulator in your state.
Seek legal advice: If you've been financially harmed by twisting, you may want to seek legal advice to explore your options.

Preventing Twisting

To prevent twisting, here are some steps you can take:

Do your research: Before buying an insurance policy, do your research and read reviews from other customers.
Ask questions: Don't be afraid to ask questions about the policy's details, benefits, and exclusions.
Get a second opinion: Consider getting a second opinion from another agent or broker to verify the policy's details.
Check the agent's or broker's credentials: Make sure the agent or broker is licensed and has a good reputation.

Conclusion

Q: What is twisting in insurance?

A: Twisting is a type of insurance sales practice where an agent or broker exaggerates or misrepresents the benefits of an insurance policy to convince a customer to buy it.

Q: How do I know if I've been twisted?

A: If you feel like you've been misled or taken advantage of by an insurance agent or broker, it may be a sign of twisting. Look for high-pressure sales tactics, exaggerated claims, misrepresentation of policy details, and a lack of transparency.

Q: What are some common signs of twisting?

A: Some common signs of twisting include:

High-pressure sales tactics
Exaggerated claims about the policy's benefits or coverage
Misrepresentation of policy details, such as the coverage, exclusions, or premiums
Lack of transparency about the policy's terms and conditions
Unwillingness to answer questions or provide clear explanations

Q: What should I do if I think I've been twisted?

A: If you think you've been twisted, here are some steps you can take:

Seek clarification from the agent or broker
Get a second opinion from another agent or broker
File a complaint with the insurance regulator in your state
Seek legal advice to explore your options

Q: How can I prevent twisting?

A: To prevent twisting, here are some steps you can take:

Do your research and read reviews from other customers
Ask questions about the policy's details, benefits, and exclusions
Get a second opinion from another agent or broker
Check the agent's or broker's credentials and reputation

Q: What are the consequences of twisting?

A: The consequences of twisting can be severe, including:

Financial loss for the customer
Emotional distress for the customer
Reputational damage for the insurance industry
Regulatory action against the agent or broker
Increased costs for the insurance industry

Q: Is twisting a crime?

A: Yes, twisting is a crime in many states. It is considered a form of insurance fraud and can result in fines, penalties, and even license revocation for the agent or broker.

Q: How can I report twisting?

A: If you think you've been twisted, you can report it to the insurance regulator in your state. You can also file a complaint with the National Association of Insurance Commissioners (NAIC) or the Federal Trade Commission (FTC).

Q: What are some red flags to watch out for when buying insurance?

A: Some red flags to watch out for when buying insurance include:

Unusually low premiums or coverage
Unwillingness to provide clear explanations or answer questions
High-pressure sales tactics or a sense of urgency
Misrepresentation of policy details or benefits
Lack of transparency about the policy's terms and conditions

Q: How can I find a reputable insurance agent or broker?

A: To find a reputable insurance agent or broker, look for:

A good reputation and reviews from other customers
A clear and transparent explanation of the policy's details and benefits
A willingness to answer questions and provide clear explanations
A license and certification from a reputable insurance organization
A physical office or location where you can meet with the agent or broker

Q: What are some tips for buying insurance?

A: Some tips for buying insurance include:

Do your research and read reviews from other customers
Ask questions about the policy's details, benefits, and exclusions
Get a second opinion from another agent or broker
Check the agent's or broker's credentials and reputation
Read and understand the policy's terms and conditions before signing.