Florida Life and Health Insurance License Practice Test

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Prepare for the Florida Life and Health Insurance License Test. Study with flashcards and multiple choice questions, each with hints and explanations. Get ready for your certification exam with ease!

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What is an agent guilty of if they induce an insured to surrender an insurance policy through misrepresentation?

  1. Fraud

  2. Twisting

  3. Churning

  4. Coercion

The correct answer is: Twisting

If an agent induces an insured to surrender an insurance policy through misrepresentation, they are guilty of twisting. Twisting is the act of persuading a policyholder to replace a policy with a new one, often with misleading information. Option A, fraud, is incorrect because twisting is a specific type of fraudulent act in insurance. Option C, churning, is incorrect because churning involves excessive trading to generate commissions, not necessarily involving misrepresentations. Option D, coercion, is incorrect because coercion involves the use of physical force or threats, not necessarily involving insurance policies. Therefore, the best answer is B, twisting.

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