What activity is a subagent permitted to do while transacting insurance?

A subagent is an individual who assists a licensed insurance agent in selling and servicing insurance policies, effectively acting on behalf of that licensed agent. The correct option highlights the role of a subagent in negotiating insurance contracts under the supervision and authority of the licensed agent they represent. This is consistent with the licensing and regulatory framework governing insurance practices, which ensures that all transactions comply with state laws and maintain accountability through the supervising licensed agent.

In contrast, other activities mentioned in the other choices fall outside the permissible scope of a subagent's role. Issuing insurance policies independently suggests operating beyond the oversight of a licensed agent, which is not allowed. Processing claims without approval would similarly bypass the necessary checks and balances required in claims handling. Collecting premium payments directly could involve handling funds without the appropriate licensing or oversight, leading to potential regulatory issues. Subagents focus on supporting licensed agents in their transactions rather than operating autonomously.