Texas Life Agent Practice Exam 2025 – Comprehensive All-in-One Guide to Master Your Certification!

A successful "twisting" strategy typically refers to the practice where an agent persuades a client to discontinue an existing life insurance policy in favor of a new one, usually for the agent's financial gain rather than the benefit of the client. Consequently, a key outcome of this practice is that the policyholder may experience policy cancellation or lapse.

When a client is convinced to switch policies, they may not fully understand the implications, such as the potential loss of benefits or the waiting periods associated with new policies. As a result, their original policy is canceled, leading to a lapse in coverage, which can leave them without protection during critical periods. This outcome clearly illustrates the risks associated with twisting, both for the policyholder and the overall insurance market.

The other options do not align with the nature of twisting: increased transparency or customer loyalty, as well as promoting ethical products, are unlikely to result from manipulative sales tactics like twisting. Instead, these options reflect positive values in the insurance industry, which are not congruent with the potentially harmful practice of twisting.