Which statement about rebating and twisting is FALSE?

The statement about rebating and twisting that is false is that misrepresentation is a specific form of twisting. In the context of insurance practices, rebating refers to the act of offering incentives or inducements, such as cash or gifts, to persuade a customer to purchase an insurance policy. This is considered unethical and is typically prohibited by regulatory authorities.

Twisting, on the other hand, involves convincing a policyholder to switch from one insurance policy to another by using misleading or false information about the benefits or terms of the new policy compared to the old one. It is a deceptive practice aimed at gaining new business, often to the detriment of the policyholder's interests.

While both twisting and misrepresentation are unethical and can lead to significant regulatory penalties, they are distinct concepts. Misrepresentation refers broadly to the act of providing false or misleading information, while twisting is a specific type of misrepresentation that focuses on persuading clients to exchange policies.

Switching policies is not inherently wrong and can allow policyholders to adjust their coverage to better suit their needs, provided that it is done transparently and without misleading information. Thus, while options regarding rebating or twisting follow ethical guidelines, the assertion that misrepresentation is a specific form of twisting is inaccurate, making