Generally, an illegal practice of inducing a person to cancel an insurance policy in order to take out a new one.
Practice of inducing a policyowner in one company to lapse, forfeit or surrender a life insurance policy for the purpose of taking out a policy in another company. Generally classified as a misdemeanor, subject to fine, revocation of license and sometimes imprisonment.
A term applied to the selling process when one policy is being replaced by another. When an agent "twists" he or she has misrepresented the facts of either the existing policy or the replacement policy (for the benefit of the agent). p 164
an unfair trade practice, in insurance, whereby an agent or broker attempts to persuade a life insurance policyholder through misrepresentation to cancel one policy and buy a new one Return to Menu
An illegal insurance sales practice, in which a sales agent misrepresents the features of a contract in order to induce the contract owner to replace his current contract, often to the disadvantage of the contract owner. See also misrepresentation.
Inducing a life assurance policyholder to lapse or cancel a policy in order to replace the policy with another to the detriment of the policyholder.
The practice of inducing by misrepresentation, or inaccurate or in-complete comparison, a policyholder in one company to lapse, forfeit or surrender his insurance for the purpose of taking out a policy in another company.