Which of the following is an example of transacting insurance?

• A. Solicitation of Insurance
• B. Adjusting a claim
• C. Issuing a policy without underwriting
• D. Billing premium amounts

Answer: (A)

Transacting insurance means actions that bring about or finalize an insurance contract—essentially the steps involved in offering, seeking, negotiating, or issuing coverage. Solicitation of insurance exactly fits this, because it is the activity of inviting a potential customer to consider and enter into an insurance contract, initiating the contract process.

Adjusting a claim occurs after coverage is in place; it involves evaluating and settling a claim rather than creating or selling insurance, so it’s not a transacting activity. Issuing a policy without underwriting would skip an important risk assessment; while issuing a policy is a form of transacting, doing so without proper underwriting is not a legitimate example of the transacting activity and would be improper. Billing premium amounts is part of ongoing policy administration and payments, not the act of transacting insurance itself.

So the act that best represents transacting insurance is the solicitation of insurance, since it directly initiates the insurance contract.