What term refers to the act of exchanging a contract of insurance for compensation on behalf of an insurance company?

The term that refers to the act of exchanging a contract of insurance for compensation on behalf of an insurance company is selling. Selling in the insurance context involves not only the actual transaction of providing a policy to a customer but also encompasses the entire process of understanding and identifying the customer's needs, presenting the insurance options available, and ultimately executing a contract in exchange for premium payments.

Selling emphasizes the transfer of risk from the insured to the insurer, framed within a legal contract. The compensation received by the insurance company is typically through premiums paid by the policyholder, which is a fundamental aspect of insurance transactions. This term accurately captures the essence of what occurs when a policy is exchanged for compensation, making it the best answer in this context.

Other terms like negotiating typically relate to discussions around terms and conditions but do not imply the final transaction. Soliciting refers to the act of seeking potential clients or persuading them to purchase insurance but does not encompass the actual exchange that defines selling. Finally, terminating relates to ending an existing contract rather than engaging in the act of selling a new one.