Montana State Life Insurance Practice Exam 2025 - Free Life Insurance Practice Questions and Study Guide

The process of transacting insurance typically involves several key steps that facilitate the creation and management of insurance contracts. Among these steps, negotiation, solicitation, and the sale or effectuation of an insurance contract are critical elements of the transaction process.

Negotiation involves discussing terms, premiums, and conditions between the insurer and the insured to reach a mutually agreeable arrangement. Solicitation refers to the efforts made to encourage potential clients to consider purchasing insurance products. The sale or effectuation of an insurance contract is the final step where the agreement is formalized, and coverage is established.

Post-sale evaluation, while important in the overall lifecycle of insurance, is not considered a step in the transaction itself. This phase often involves reviewing the services provided, assessing client satisfaction, or making necessary adjustments to an existing policy, but it happens after the sale has already been completed. Therefore, it does not fit within the core steps involved in the initial transaction of insurance.