Which of the following is an example of "churning?"

Churning refers specifically to the practice of persuading a policyholder to replace an existing insurance policy with a new one, often without a real benefit to the policyholder. This is typically done in a deceptive or misleading manner, where the agent may exaggerate the advantages of the new policy while downplaying the costs or disadvantages associated with the replacement. In this context, option B clearly fits the definition of churning because it involves the replacement of a policy within the same company, which could suggest that the agent is more focused on earning commissions from new policies rather than ensuring the best interest of the client.

Consider the other options: training a new employee on policies does not involve altering or deceiving customers, while offering lower premiums for better coverage represents a straightforward sale that benefits the consumer. Creating new policies for existing customers, if done ethically and transparently, does not imply any misleading behavior. Thus, the specific nature of churning highlights its deceptive practices, making option B the most accurate representation of the concept.