What is the term for causing a person to give up an existing contract through surrender or lapse?

The term for causing a person to give up an existing contract through surrender or lapse is referred to as "twisting." This is a practice where an agent influences a policyholder to replace an existing insurance policy with a new one, usually to the agent's advantage, often by providing misleading information or emphasizing the benefits of the new policy while downplaying the advantages of the current one.

Twisting typically arises in the insurance industry when taking advantage of a customer's lack of knowledge or understanding of their current policy. It can lead to significant consequences for the policyholder, including loss of coverage, increased premiums, or inadequate benefits. By compelling someone to surrender an existing policy, agents may not act in the best interest of the client, which is why twisting is often viewed unfavorably and may be subject to regulatory scrutiny.

The other terms have specific meanings that do not align with the definition provided. For example, churning refers to the practice of an agent persuading a client to repeatedly replace policies with minimal benefit, renewal pertains to continuing an existing policy term, and conversion usually involves changing a policy from one type to another without underwriting requirements.