Which activity is not considered part of transacting insurance?

Handling claims after an incident is not considered part of transacting insurance in the same way that the other activities are. Transacting insurance primarily involves the initial stages of the insurance process, which include discussing coverage options with clients, presenting quotes, and completing applications for coverage. These activities are directly related to the sales and service aspects of insurance—essentially the points at which an agency engages with potential customers to establish a policy.

In contrast, claims handling typically occurs after an insurance policy has already been established and involves the processing of claims when an insured event takes place. This is more of an administrative and service function intended to provide support to clients after a loss has occurred, rather than engaging in the transactional aspects of selling or establishing the insurance contract itself. Thus, the correct answer identifies an activity that falls outside the definition of transacting insurance, which focuses on initial customer engagement and policy negotiations.