To persuade a New York senior to replace her current Medicare supplement policy, a producer misrepresents the benefits of the policy he is selling and disparages her existing coverage with claims that are not true. Under New York law, this practice is:

Why D is correct

Under the New York Insurance Law, the marketing standards enforced by the Department of Financial Services prohibit a producer from misrepresenting policy terms or belittling existing coverage to induce a consumer to replace it - the practice known as twisting. A truthful replacement is lawful; a replacement built on falsehoods is not, no matter how the premiums compare or what forms are signed later. The Superintendent of Financial Services may discipline a producer who sells this way.

Why the other options are wrong

• A) A lower premium does not launder misrepresentation; the marketing standards govern how the sale is made, not just what it costs.
• B) Sincerity is no defense to false statements; a producer who believes in the product must still describe it truthfully.
• C) A signed form documents a replacement; it does not authorize the falsehoods that produced the signature.

Memory hook

Twisting: replace the policy with lies, and DFS comes for the license.