Which one of the following statements is true regarding traditional marketing systems for insurance?

Which one of the following statements is true regarding traditional marketing systems for insurance?



A. The three traditional marketing systems are the independent agency system, the captive agency system, and the exclusive agency system.
B. An insurer operating through a managing general agent can expect higher fixed costs.
C. A principal characteristic that distinguishes one traditional marketing system from another is the ownership of policy expirations.
D. A single producer cannot operate as both an agent and a broker in a given state.


Answer: C. A principal characteristic that distinguishes one traditional marketing system from another is the ownership of policy expirations.

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