what is twisting in insurance hi this is Tom Doldon I'm a nationally recognized insurance expert and today we're gonna answer the question of what is twisting in insurance the first thing I'm going to tell you is that twisting is illegal twist enos is is sort of like a bait and switch tactic and it's used mostly in life insurance it's where one life insurance agent in an effort to induce you to bring your life insurance over to them will try to get you to cancel another policy and move your new policy over to them using misrepresentations and lies so twisting is is somebody who is unethical trying to get you to move your life insurance to another one that appears to be very similar yet they've used misrepresentations and fraud in order to get you to do that twisting is illegal in I I would say every situation of changing life insurance it is a requirement the state every state requires that you fill
rebating life insurance Historically, rebating of commissions has been in the bad press because of the elements of inducement. I consider rebating of commissions as giving in to the 'dark side of the force'. Most clients are unaware of this dynamics of the 'dark side' because they will always select the cheapest route. Therefore, the onus is on the adviser to do the right thing. Unfortunately, it is difficult to decouple rebate and inducement. In all cases, the line is blurred. My advice to any company or advisers to be very careful especially if not charging any advisory fee and neither offering any comprehensive financial plan. Doing a Type 1 or 2 KYC is not a comprehensive financial plan. In fact, according to MAS' mystery shopper exercise, 90% of advisers did some fact find but only 28% made suitable recommendations. A professional must not exploit known weaknesses of clients by using commissions rebates to induce a purchase. A professional must do