Twisting is the use of misleading, incomplete, or fraudulent policy comparisons to induce, or attempt to induce, a policyowner to lapse, forfeit, surrender, terminate, exchange, convert, or replace an existing insurance policy. The producer’s conduct described in the question is a classic example of twisting because the misleading comparison is used to convince the insured to surrender existing coverage.

Twisting is prohibited because replacement decisions can have serious consequences. A new policy may have different exclusions, waiting periods, contestability periods, benefit limits, premiums, surrender charges, or underwriting requirements. A producer must provide accurate, balanced, and complete comparisons when discussing replacement or surrender of coverage.

Rebating involves offering an unlawful return of premium, commission, or other inducement not stated in the policy. Coercion involves forcing or improperly pressuring a person to act. Defamation involves false statements that harm another person’s reputation. None of those terms specifically describes misleading comparisons intended to cause surrender of an existing policy.

Study Guide references/topics: unfair trade practices; policy replacement; twisting; misleading comparisons; NRS 686A.050 .