California Life and Health Insurance Practice Exam

Which of the following is NOT considered to be an act of insurance solicitation?

1. Directly contacting potential clients

2. Publishing a magazine where one of the advertisers is an insurer

3. Offering insurance seminars to the public

4. Providing insurance quotes over the phone

The correct answer is: Publishing a magazine where one of the advertisers is an insurer

The correct response identifies publishing a magazine with an insurance advertiser as not an act of insurance solicitation. Insurance solicitation involves directly interacting with potential clients with the intention of guiding them towards purchasing insurance products. By simply publishing a magazine with an insurer's advertisement, the publisher is not actively promoting or negotiating insurance policies. This situation does not entail direct contact or interaction aiming to sell an insurance product, which is fundamental to solicitation activities. In contrast, contacting potential clients directly, conducting insurance seminars for the public, and providing quotes over the phone all involve proactive measures to engage with consumers and offer insurance solutions. These activities show a clear intention to solicit business and establish connections with potential clients, which differentiates them from mere advertisement placement in a publication.