Twisting in insurance practices is best described as?

Twisting in insurance practices refers specifically to the unethical act of inducing policyholders to switch from one insurance policy to another by using misrepresentation or deceptive tactics. This practice is damaging because it can lead to consumers making decisions that are not in their best interests, often resulting in them paying higher premiums or facing exclusions in coverage that they were not aware of when they made the switch.

The key element in twisting is the use of misrepresentation, which can include telling a policyholder that their current policy doesn't provide adequate coverage or making false statements about the benefits of a new policy compared to the old one. This conduct is prohibited under insurance regulations due to its potential to harm consumers and destabilize the insurance market.

The other options, while related to insurance practices, do not accurately capture the essence of twisting. Underwriting a high-risk policy refers to the assessment and acceptance of risk, which does not involve deception. Fraudulent claim filing involves dishonest activities after a policy has been taken out, and negotiating premium amounts is a standard part of the insurance transaction process without any implication of misrepresentation.