Final answer:
The correct answer is twisting. Twisting (a) is a practice where an insurance agent induces a policyholder to switch insurance companies without considering the negative consequences of the switch.
Step-by-step explanation:
The correct answer is a) Twisting. Twisting is a practice where an insurance agent induces a policyholder to switch insurance companies without considering the negative consequences of the switch. This is a violation of ethical practices in the insurance industry.
An example of twisting could be an insurance agent convincing a policyholder to switch companies by promising them a lower premium, without disclosing that the new policy has higher deductibles or less coverage. By doing so, the agent is taking advantage of the policyholder's lack of understanding or knowledge of insurance policies.
In contrast, collusion refers to an illegal agreement between two or more parties to deceive or defraud others. Rebating involves offering a portion of the insurance premium or giving other value to the policyholder as an incentive to purchase insurance. Misrepresentation is providing false or misleading information about an insurance policy.