State RegulationsFL specificDifficulty 3/5
A Florida agent honestly compares a client's existing policy with a proposed new policy, uses the comparative information form, discloses every difference including cost, and the client voluntarily replaces the policy after the required signed statements are submitted. Under Florida law, this is
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Under Fla. Stat. 626.9541(1)(l),(aa), twisting turns on misrepresentation or incomplete, misleading comparison. When the agent follows Florida's replacement rules - the dual-signed statement with the application and the comparative information form required under F.A.C. 69B-151.007 - and the client chooses freely, the replacement is lawful competition, not twisting.
Why the other options are wrong
- A) Replacement itself is not unlawful; only replacements induced by misrepresentation constitute twisting.
- B) Churning involves using the same policy's values to buy more coverage within it; a transparent cross-policy comparison is not churning.
- C) Initiating a comparison is ordinary persuasion; coercion requires threats or intimidation.
Memory hook
Honest forms and full disclosure = legal replacement.