West Virginia State Life Insurance Practice Exam

Which of the following is NOT considered "conducting insurance business"?

1. Selling life insurance policies

2. Handling claims for a policy

3. Managing a client's insurance portfolio

4. Selling shares of stock

The correct answer is: Selling shares of stock

The correct choice represents an activity that falls outside the realm of insurance business. Selling shares of stock involves engaging in the securities market, which is governed by different regulations and licensing requirements than those that apply to insurance products. In contrast, the other activities mentioned—selling life insurance policies, handling claims for a policy, and managing a client's insurance portfolio—are directly related to the insurance business. Selling life insurance policies is the primary activity of insurance agents, as it involves offering products that provide financial protection to policyholders. Handling claims is a crucial part of the insurance process, where insurance companies assess and pay out claims to policyholders based on the terms of the policy. Managing a client's insurance portfolio also aligns with insurance practices, as it involves assessing and advising clients on their insurance needs and making adjustments to their coverage over time. Therefore, these activities constitute the "conducting insurance business," while selling shares of stock does not.