Which of the following acts is included in the definition of transacting insurance?

Transacting insurance encompasses a variety of activities that involve the process of engaging with insurance products and services. Among these activities, negotiating contracts of insurance is a fundamental aspect. This involves discussions and agreements between parties regarding the terms, conditions, and coverages of an insurance policy, which is essential for establishing a valid insurance contract.

Negotiation requires a thorough understanding of both the needs of the insured and the offerings of the insurer, making it a pivotal component in the overall process of obtaining insurance coverage. Other functions, such as advertising insurance products or managing customer service for claim inquiries, while important to the insurance industry, do not directly qualify as "transacting" insurance, which specifically requires the active engagement in agreement on insurance terms.

Processing claims is relevant to the insurance experience, but it is viewed more as an administrative task rather than a direct transaction involving the creation of insurance contracts. Thus, negotiating contracts of insurance distinctly fits the definition of transacting insurance by focusing on the interactive and contractual nature of insurance dealings.