Twistingis the unethical practice of using misrepresentation or incomplete information to persuade an insured to replace an existing policy with a new one, often to their detriment. It is prohibited under Oklahoma’s Unfair Trade Practices Act (Title 36 O.S. § 1204) to protect consumers from deceptive sales practices.
Option A: Incorrect. Rebating involves offering a portion of the premium or other inducements to purchase insurance.
Option B: Correct. Twisting involves misrepresenting benefits to induce policy replacement.
Option C: Incorrect. Defamation is making false statements harming someone’s reputation, not policy replacement.
Option D: Incorrect. Forfeiting is not a term related to policy replacement practices.
This question aligns with the Prometric content outline under “State Insurance Statutes, Rules, and Regulations,” which covers unfair trade practices.
[:, Prometric Oklahoma Life, Accident, and Health or Sickness Producer Exam Content Outline (Section: State-Specific Knowledge – Oklahoma Insurance Statutes)., Oklahoma Insurance Department, Title 36 O.S. § 1204 (unfair trade practices)., Standard insurance study guides (e.g., Kaplan, ExamFX) for Oklahoma producer licensing., ]
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