Which of the following practices is aimed at inducing policy sale fraudulently?

The practice aimed at inducing policy sale fraudulently is known as twisting. Twisting involves persuading a policyholder to switch policies from one insurer to another or to surrender a policy by presenting false or misleading information about the other company. This often leads the individual to believe that they will receive better benefits or coverage than what they had in their current policy, all based on deceptive practices rather than honest comparisons.

Twisting can undermine trust in the insurance industry and can lead to financial losses for consumers who are misled into making poor insurance decisions. The intent behind twisting is to make a sale at the expense of the insured’s best interest, highlighting its fraudulent nature.

In contrast, while misrepresentation also involves providing false information, it is typically more narrowly focused on an individual instance of lying about a policy's terms or benefits rather than on the broader act of switching policies. The act of rebating refers to offering discounts or incentives as part of the insurance transaction, which is generally considered an unethical or illegal practice but does not entail the element of fraud that twisting does. Lastly, defamation involves harming someone’s reputation and is not directly related to the fraudulent practices in the sale of insurance policies.