New Jersey Life Insurance Practice Exam

The term that describes an attempt to persuade an individual to purchase an insurance policy is known as the solicitation of insurance. This process involves agents or representatives actively engaging potential clients, providing them with information about various insurance products, highlighting the benefits, and encouraging them to make a decision to buy a policy. Solicitation plays a crucial role in the insurance industry as it helps to educate consumers about their options and the importance of securing insurance coverage for financial protection.

In this context, solicitation refers to the initial interactions where potential customers are approached about insurance solutions. The other terms do not encompass the act of persuading someone to buy insurance. For instance, a lapse refers to the termination of a policy due to non-payment of premiums, while a field underwriter is typically involved in the assessment of risk and underwriting processes rather than direct solicitation. A policy summary usually outlines the key features and benefits of an existing policy rather than serve as a persuasive tool for selling insurance.