Which of the following best describes the practice of "Churning"?

Churning refers to the unethical practice in which an insurance agent persuades clients to cancel their existing policies in order to purchase new ones, primarily for the purpose of generating a new commission from the sale of the new policy. This practice can be harmful to clients, as it often results in incurring unnecessary costs and may leave them with gaps in coverage, all while benefiting the agent financially.

The correct choice clearly encapsulates this definition, highlighting the motive behind the action—replacing policies specifically to earn new commissions rather than acting in the best interests of the client. Other options describe actions that are generally beneficial or ethical in nature, such as advising clients on suitable policies or informing them about their coverage options, which do not constitute churning. Therefore, the focus on incentive-driven policy replacement distinguishes this practice and underscores its negative implications in the field of insurance.