Which practice is typically prohibited in life insurance sales?

Twisting policies is a practice that is generally prohibited in life insurance sales because it involves persuading a policyholder to replace their existing insurance policy with a new one for the benefit of the agent, rather than the client. This can lead to a loss of valuable benefits for the policyholder and can be seen as a breach of ethical standards in insurance sales. The act of twisting typically focuses on misleading the client about the advantages of the new policy, often without full disclosure of the consequences of replacing their original policy.

In the context of insurance regulations, twisting can harm clients by resulting in unnecessary costs, loss of coverage, and diminished financial security. Therefore, regulatory bodies actively monitor and discourage this behavior to protect consumers and ensure that sales practices maintain high ethical standards.