What action can result in termination of a policy under twisting?

Twisting refers to the unethical practice of persuading a policyholder to replace an existing insurance policy with a new one, usually for the benefit of the agent rather than the policyholder. This practice often involves misleading the client about the benefits or drawbacks of their current policy compared to a new one.

In this context, engaging in illegal inducement or activity directly relates to the act of twisting. Such actions can contribute to the termination of a policy because they often involve fraudulent behavior, which can nullify the agreement between the insurer and policyholder. Insurers have strict regulations in place to protect consumers from deceptive practices, and if a policyholder is found to have been misled or coerced into changing their policy, the original policy can be terminated as a result of that unethical behavior.

The other options may contribute to policy issues, such as excessive premium payments or failure to disclose policy terms, but they do not specifically encapsulate the notion of twisting, which is focused on the unethical persuasion aspect that can lead to the termination of a policy. Neglecting to follow up with clients, while problematic in maintaining good client relations, does not directly relate to the termination of a policy under the definition of twisting.