State RegulationsCA specific✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
Under California Insurance Code Section 35, which activity is included in the definition of 'transacting' insurance?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Section 35 defines transacting insurance as solicitation, negotiation, or execution of a contract of insurance, or the transaction of matters subsequent to the execution of the contract. Each of these activities requires a license. Soliciting — asking someone to buy — is squarely within the definition.
Why the other options are wrong
- B) Casual reading of a policy without solicitation, negotiation, or execution does not constitute transacting insurance.
- C) Recommending a competitor's product without soliciting or negotiating a specific policy is not transacting.
- D) Tax preparation is a separate profession entirely unrelated to the statutory definition.
Memory hook
Transact = solicit, negotiate, execute, follow up. If you are pushing a policy, you are transacting — and you need a license.