Florida Statutes, Rules, and Regulations Pertinent to Life and Annuity Insurance, Including Variable Products
What separates churning from twisting under Florida law?
Answer and explanation
Answer: D. Section 626.9541(1)(aa) describes churning as using values in an existing policy to purchase another for additional premiums or commissions without an objectively reasonable basis for believing it benefits the policyholder, while (1)(l) describes twisting as misleading representations made to induce lapse or surrender. Neither is confined to one product line, neither depends on the number of insurers, and neither requires proof of loss.Source: Fla. Stat. § 626.9541 — 626.9541(1)(aa) compared with (1)(l)
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