North Carolina Adjuster Practice Exam 2025 – Complete Study Resource

The action that has been identified as Kelly's unethical sales practice in Tayshawn's case is twisting. Twisting occurs when an agent induces a policyholder to replace an existing insurance policy with a new one, often by misrepresenting the benefits or features of the new policy in a way that makes it seem more advantageous than the original. This practice can lead to financial harm for the policyholder, as it may result in losing benefits, facing higher premiums, or dealing with different terms than what the individual originally had.

In this case, if Kelly is persuading Tayshawn to switch his insurance by making misleading claims about how the new policy is better without providing full disclosure about the drawbacks or differences, then this is classified as twisting. It's important for agents to provide clear and accurate information so that clients can make informed decisions about their coverage options, which is a cornerstone of ethical sales practice in the insurance industry.