Under which marketing system do insurers solicit customers by mass media advertising and mail without the services of an agent?

• A. Branch office
• B. Contingent
• C. Internet exchange
• D. Direct response

Answer: (D)

Direct response marketing is about reaching potential customers directly through mass media channels and mail and getting a response without using an agent. Insurers run campaigns that invite people to call a toll-free number, mail back a response card, or visit a website to request information or apply for coverage. The selling process is initiated by the consumer and completed without an agent's involvement, making it a direct-to-consumer approach that can scale to a broad audience.

This differs from a branch office setup, which relies on licensed agents who meet clients in local offices to present and sell policies. An internet exchange describes online marketplaces or brokers that may involve intermediaries or comparison-based pathways, rather than a purely agent-free direct solicitation. Contingent refers to a type of compensation arrangement rather than a marketing channel, so it doesn’t describe how the insurer solicits customers.