Chicago Securities Arbitration Lawyer - Insurance Abuses - Recovers Investment Losses through NASD Arbitration - Brokerage Attorney, Stockbroker Fraud

Helping individuals recover their investment and retirement plan losses.

By definition, twisting occurs when an insurance agent, for the purposes of generating a commission, persuades a client to lapse, surrender, or otherwise terminate an insurance product and replace it with another product that provides little or no economic benefit to the client. Often, the accumulated cash value of an older policy is used to mask the true cost of the new policy, allowing the agent to provide a favorable (but misleading) comparison. In the insurance business, "churning" often is used interchangeably with twisting, though churning can refer more broadly to excessive trading or financial product replacement for the purpose of generating commissions.

"Vanishing premiums" refers to inflated claims about the length of time a policyholder will need to pay premiums, such as "you only have to pay premiums for seven years, and then the policy will pay for itself." Unfortunately, many consumers who were sold vanishing premium policies in the 1980s and 1990s later found they needed to cough up more premium dollars to keep their policies from lapsing.

These practices not only are misleading and unethical, but also are illegal. There are limited, valid reasons for replacing a policy, such as dramatic changes in a client's financial situation. The following scenario is very common. The insurance agent a client has been dealing with for years has retired, and the replacement agent contacts the client to discuss life insurance coverage. The agent recommends the client replace several older policies, which have accumulated significant cash value, with newer, improved policies. The agent shows the client impressive charts and projections about how much better the new policies are than the old ones-including lower premiums, a higher death benefit, and faster cash-value accumulation. It sounds advantageous, and the agent seems earnest, so the client typically signs on the dotted line. But when the next annual statement arrives, the client will see that the cash value for the new policies is far less than the cash value on the old policies. This is a classic example of twisting, a very common deceptive insurance sales practice.



	About Our Lawyers Learn more about Andrew Stoltmann, Dave Neuman and Joe Wojciechowski Stoltmann In The News Various news articles and TV transcripts quoting Andrew Stoltmann or profiling his clients. Stoltmann Arbitration Awards Arbitration Awards by Andrew Stoltmann. InvestmentFraud.PRO Blog Read the InvestmentFraud.PRO Blog. Arbitration Process Questions and Answers on the Arbitration Process. Checking Out Your Broker Tips for Checking Out Brokers and Advisers. 151 Answers To Most Faqs. Excerpts from the book by co-authored by Andrew Stoltmann on Investor Rights for the 21st Century. Group Arbitration Actions Learn more about Group Arbitration Actions. Insurance Abuses Life Insurance Twisting Ponzi Scheme Scheme usually offers abnormally high short-term returns... Bond Fraud At Stoltmann Law Offices, we've represented many clients in arbitrations ... Get Started, Schedule A Meeting. Contact our office to schedule a meeting. Cases Pending/Current Investigations Specific broker’s/brokerage firm’s name and actions Free, 24 Hour, Online Evaluation Contact our office to schedule a meeting.