What practice does "churning" describe?

Churning refers to the unethical practice where an insurance agent sells policies to clients primarily to generate commissions for themselves, rather than focusing on the clients' best interests. In this context, the agent may recommend replacing an existing policy with a new one, even if the new policy does not provide any additional benefit to the client. This practice is often detrimental to policyholders, as they may lose coverage benefits or incur unnecessary costs due to frequent policy changes.

This distinction highlights the focus on commissions driving the behavior, which ultimately undermines the trust and fiduciary responsibility that agents have toward their clients. Understanding this definition is crucial in recognizing the ethical obligations of insurance professionals and the importance of prioritizing client needs over personal financial gain.