Final answer:
Churning is the term used to describe the deceptive practice of using cash values from an existing life insurance policy to purchase a new one, often to the detriment of the policyholder and the benefit of the agent.
Step-by-step explanation:
The practice of using cash values from an existing life insurance policy deceptively to fund the purchase of a new policy is known as Churning. This unethical behavior involves an agent advising a policyholder to use the accumulated cash value in their whole life insurance policy to buy additional insurance when it may not be in their best interest.
This can lead to unnecessary sales commissions for the agent and possible tax consequences for the policyholder, along with the depletion of the cash value that could have been used for other purposes.
Twisting, on the other hand, involves misleading a client to switch from one company's policy to another, often based on misrepresentations. Rebating is offering an inducement to purchase insurance, such as a partial return of the agent’s commission, and Misrepresentation is providing false information about the policy benefits, terms or conditions.
Therefore, the correct answer is A. Churning