Twisting in insurance refers to which of the following practices?

Twisting in insurance is a term used to describe the unethical practice of persuading policyholders to surrender or replace their existing insurance policies with new ones from another insurer, primarily for the financial benefit of the agent or broker, such as earning a commission. This practice often results in clients facing increased premiums, diminished coverage, or a loss of benefits that they previously had.

In this context, the focus is on the motivation behind the behavior—specifically, the agent's or broker's attempt to gain commissions at the expense of the client's best interests. This situation can create financial strain for the client and may lead to a gap in coverage, ultimately harming their financial security.

The other options are not examples of twisting. For instance, providing premium waivers, offering discounts to loyal customers, and encouraging policyholders to convert to term insurance can all be legitimate practices that aim to benefit the client rather than solely serving the financial interests of the agent. Thus, the practice of twisting is specifically tied to misleading clients for commission gains, making the chosen answer the appropriate definition of the term.