Which of the following statements about twisting is FALSE?

Twisting is defined as a practice in insurance where an advisor persuades an individual to relinquish an existing policy and take out a new one, often without properly informing them about the disadvantages of discontinuing their current policy. The correct answer indicates that the statement regarding offering a prospect a special inducement to purchase a policy is false in the context of twisting.

The essence of twisting revolves around the concept of misrepresentation and a lack of transparency. Statements A and B accurately capture the nature of twisting by highlighting it as a deceptive practice that often results in the policyholder being unaware of the potential drawbacks associated with the change. Similarly, statement C aligns well with this definition, as it emphasizes the misleading aspects of policy comparisons that can lead to an improper decision.

In contrast, the mention of offering special inducements to buy a policy does not encapsulate the core issue associated with twisting, which centers more on the misrepresentation or lack of adequate information rather than outright inducements. Thus, identifying this statement as false reinforces the understanding of twisting as a practice based on misleading information rather than incentives.