PSI Life Exam Practice Test

In Wisconsin, how is an "intermediary" defined?

1. A policyholder

2. An insurance underwriter

3. A solicitor

4. A claims adjuster

The correct answer is: A solicitor

In Wisconsin, an "intermediary" is defined as a solicitor. An intermediary, in the context of insurance, refers to an individual or entity that facilitates communication and transactions between clients and insurance providers. Solicitations typically involve helping potential clients understand their options and guiding them toward purchasing insurance products, thus playing a crucial role in the distribution of insurance services. While the other options involve different responsibilities within the insurance industry, they do not fit the definition of an intermediary. A policyholder is simply someone who owns an insurance policy, an insurance underwriter assesses risk and determines policy terms, and a claims adjuster evaluates losses to determine the amount an insurer should pay for a claim. All of these roles are essential in the insurance process, but they do not encompass the intermediary function that focuses on facilitating the sale and understanding of insurance products.