What characterizes the Direct Response System?

The Direct Response System is characterized primarily by the method of sales conducted directly to consumers through channels such as direct mail or telephone. This approach enables insurance companies to eliminate the intermediary role of independent agents, allowing for a closer direct interaction with potential customers.

In this system, insurers advertise their products directly to the public, encouraging consumers to reach out and purchase insurance without having to engage with agents on a personal basis. This not only streamlines the purchasing process for consumers but also often allows for lower premiums, as companies can reduce operational costs associated with commissions and agent fees.

The other options illustrate different sales methods or structures that involve agents, which are not representative of the direct response approach that emphasizes direct consumer engagement without intermediaries.