Life & Health Insurance Practice Exam

The marketing or sales divisions within an insurance company are primarily responsible for increasing the number of prospective applicants. These divisions focus on promoting the company's products and services to attract potential customers. Their strategies may include advertising campaigns, outreach programs, and direct sales efforts aimed at engaging consumers and encouraging them to apply for insurance coverage. They play a crucial role in identifying target markets, conducting market research, and developing marketing strategies that enhance brand visibility and appeal.

In contrast, the underwriting division focuses on evaluating the risk associated with applicants and determining the terms of insurance coverage, while the claims division handles the assessment and payment of claims after a loss occurs. The actuarial division is involved in analyzing data to assess risk and set premiums based on statistical methods, but it does not directly engage in attracting new applicants. Thus, while all these divisions contribute to the overall functioning of the insurance company, the marketing or sales divisions are specifically tasked with increasing the applicant pool.