Which feature is most associated with a direct writer model?

Which feature is most associated with a direct writer model?

• A. Independent agents sell the product.
• B. The insurer employs its own sales staff.
• C. The marketing is driven by a network of independent brokers.
• D. Premiums are collected by the insured.

Answer: (B)

Direct writer refers to a distribution model where the insurer controls the sales process by employing its own salaried staff to market and sell directly to consumers, rather than using independent agents or brokers. This arrangement lets the insurer manage the customer relationship, underwriting standards, pricing, and branding more tightly. That’s why the feature that the insurer employs its own sales staff is the best fit for a direct writer model. The other descriptions align with different distribution approaches—independent agents or brokers representing multiple carriers, or a setup where premiums are collected by the insured—which are not characteristic of direct writing.

Direct writer refers to a distribution model where the insurer controls the sales process by employing its own salaried staff to market and sell directly to consumers, rather than using independent agents or brokers. This arrangement lets the insurer manage the customer relationship, underwriting standards, pricing, and branding more tightly. That’s why the feature that the insurer employs its own sales staff is the best fit for a direct writer model. The other descriptions align with different distribution approaches—independent agents or brokers representing multiple carriers, or a setup where premiums are collected by the insured—which are not characteristic of direct writing.