Which of the following is a channel through which insurance policies are distributed?

• A. Direct writing system
• B. American Agency system
• C. Wholesale brokers
• D. Exclusive agency

Answer: (A)

Distribution channels in insurance describe how policies reach customers. Direct writing is the channel where the insurer sells policies directly to the consumer through the company's own sales force—its employees or company-owned agents—without involving independent agents. This setup gives the insurer tight control over marketing, underwriting, and pricing, and often uses salaried staff rather than independent brokers for compensation. The other options involve intermediaries or agency relationships: exclusive agency uses agents who represent only one insurer; wholesale brokers place business with insurers on behalf of clients, usually for niche lines; and the American Agency system refers to independent agents who represent multiple insurers. So direct writing is the channel that directly connects the insurer to the buyer without an independent intermediary.