Twistingis the unethical practice of using misrepresentation or incomplete information to persuade an insured to terminate an existing policy and purchase a new one, often to the insured’s detriment. It is prohibited under Oklahoma’s Unfair Trade Practices Act (Title 36 O.S. § 1204). This differs fromchurning(replacing policies for commission without benefit to the insured) orrebating(offering inducements to purchase).
Option A: Correct. Twisting involves misrepresentation to induce policy replacement.
Option B: Incorrect. Subrogation is the insurer’s right to recover payments from a third party.
Option C: Incorrect. Rebating is offering a portion of the premium or other inducements to purchase insurance.
Option D: Incorrect. Churning involves excessive policy replacements for commissions, not necessarily misrepresentation.
This question is part of 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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