What term describes the act of inducing customers to change insurance carriers through false information?

The term that accurately describes the act of inducing customers to switch insurance carriers through false information is "twisting." Twisting specifically refers to a unethical practice in the insurance industry where an agent persuades a policyholder to replace an existing insurance policy with a new one from a different carrier, often by providing misleading or inaccurate information about the benefits or coverage of the new policy compared to the existing one.

This practice is particularly harmful because it can lead to policyholders losing valuable benefits from their current coverage without fully understanding the implications or risks of the new policy. Twisting is considered illegal and is a violation of insurance regulations designed to protect consumers.

Other terms, while related to dishonesty in the insurance field, do not capture the specific nature of misleading a customer to switch carriers. For instance, misrepresentation broadly refers to offering incorrect information but doesn’t solely focus on the act of inducing a change of carriers. Fraud encompasses a wider range of illicit activities, while deceptive practices may refer to various dishonest strategies, not limited to the act of twisting specifically. Therefore, twisting is the most precise term in this context.