The practice of 'churning' is particularly criticized because it can lead to which of the following?

Churning refers to the unethical practice of an insurance agent or financial adviser persuading a client to replace their existing life insurance policy with a new one, primarily for the purpose of generating higher commissions for the adviser. This action often does not serve the best interests of the client and can result in financial detriment.

The reason the correct choice emphasizes increased adviser earnings at the client's expense is because churning typically benefits the adviser financially through commissions while potentially harming the client. Clients may incur unnecessary costs, lose accumulated benefits, or encounter increased premiums as a result of these frequent policy replacements. The primary issue arises from the misalignment of interests, where the adviser's motivation to generate higher earnings takes precedence over the well-being and financial goals of the client.

Churning does not lead to lower premiums, better coverage, or more transparency; instead, it undermines trust and can complicate a client's financial situation without providing any real benefits. The focus on the adviser's financial gain clearly illustrates why this practice is heavily criticized in the financial and insurance industries.