Final answer:
The unethical practice of misleading representation or fraudulent statements regarding insurance policies to induce a purchase is known as twisting. It's a form of fraud distinct from redlining, which is the discriminatory denial of services based on race or ethnicity.
Step-by-step explanation:
Making any misleading representation or incomplete or fraudulent statements regarding any insurance policies to induce the purchase of insurance is called twisting. This unethical practice involves a salesperson misleading a client about the terms or benefits of an insurance policy, often to get them to switch from one policy to another. It's a form of fraud, and laws such as the Fair Housing Act have been enacted to prevent discrimination and fraudulent activities in the insurance and housing markets, although issues such as redlining have also been associated with insurance and housing disparities.
Redlining, or the discriminatory practice of denying services based on racial or ethnic makeup of an area, historically affected access to loans and insurances, contributing to ongoing inequality. Although twisting primarily pertains to misinformation in insurance, understanding redlining is essential as it shows how systemic issues in the provision of financial services, including insurance, can perpetuate injustice.