We consulted Carol Roberts, insurance coordinator for Edelman Insurance Services, and she broke down a few of the industry s most familiar and confusing terms. When an agent misrepresents a policy or aspects of a policy to get you to cancel one policy in order to purchase a new one. Twisting may result in an agent s license being revoked. When an agent convinces you to buy a new policy without a valid reason. Also could refer to the excessive turnover of policies to earn a new commission.
Agents can lose their licenses over churning, too.
Commonly used to describe an offer your agent makes where he ll split the commission with you if you ll buy a policy. This is an unfair trade practice and grounds for an agent s license to be revoked. A policy just like everyone else s, except that you are charged extra. A person is issued a rated policy if he or she has a medical condition or avocation which causes the insurance company to think there is a higher likelihood that you ll file a claim. A policy can be rated because you are overweight or have too many speeding tickets.