Which of the following statements is FALSE?

Misrepresentation refers to providing false or misleading information related to a policy or coverage, which can lead to a client making decisions based on incorrect data. Twisting, on the other hand, is a more specific act that involves convincing a policyholder to replace an existing policy with a new one, against their best interest, typically using deceptive methods.

Thus, while misrepresentation occurs in a broader sense, twisting represents a narrower concept within it—focused specifically on the act of persuading someone to switch policies, often with misleading information. Therefore, it is not accurate to classify misrepresentation as a specific form of twisting because twisting is a distinct act of manipulation that involves a policy change based on the misrepresentation. This distinction clarifies why the statement is false.

The other statements accurately reflect industry definitions. Rebating involves providing additional incentives to encourage the purchase of a policy, and switching simply refers to the option for policyholders to change their investment funds within their existing variable life policy, which does not involve misleading claims or practices.