Direct writing:
A) describes the distribution system used by independent agents and brokers in the property/liability area
B) is used only by life insurers
C) is an expensive way to distribute insurance to high income people
D) describes a system of insurance company distribution using employee/agents

Question

Quizplus · Accepted Answer

Direct writing describes a system of insurance company distribution using employee/agents. Option A describes the distribution system used by independent agents and brokers in the property/liability area, option B is incorrect as direct writing is used in both life and property/liability insurance, and option C is not necessarily true as direct writing can also be used to distribute insurance to middle and lower income people.

Direct Writing