General Insurance✓ Verified · outline & fact-checked · Sep 2026Difficulty 1/5
Which description best matches 'direct response' as a method of distributing insurance?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Direct response distribution reaches consumers through mass media — mail, telephone, internet, or television — without a personal interview with a licensed agent. The application and policy are handled through the mail or electronically. This contrasts with the agency system, in which licensed producers personally solicit and place coverage.
Why the other options are wrong
- B) A captive agent selling one insurer's products is the captive agency system, not direct response.
- C) An independent broker shopping multiple carriers is the independent agency or brokerage model.
- D) Employer-sponsored payroll deduction describes group or worksite marketing, not direct response.
Memory hook
Direct response = no handshake, just mail, phone, and clicks. You deal with the insurer, not a producer.