Which description matches the direct marketing system?

Which description matches the direct marketing system?

• A. Sells insurance through independent agents
• B. Sells directly to consumers through employees and mass media
• C. Places coverage with nonadmitted insurers
• D. Uses brokers for all transactions

Answer: (B)

Direct marketing means the insurer sells directly to customers using its own employees and advertising, without going through independent agents or brokers. That’s why describing sales to consumers through the company’s staff and mass media best matches direct marketing. The other descriptions point to different distribution approaches (agents or brokers) or unrelated aspects (nonadmitted vs. admitted status).

Direct marketing means the insurer sells directly to customers using its own employees and advertising, without going through independent agents or brokers. That’s why describing sales to consumers through the company’s staff and mass media best matches direct marketing. The other descriptions point to different distribution approaches (agents or brokers) or unrelated aspects (nonadmitted vs. admitted status).