What is considered an incentive for an agent to sell a policy?

Payment of commissions serves as the primary incentive for an agent to sell a policy. Commissions provide a direct financial reward for the agent's efforts in marketing and selling insurance products. The higher the sales volume, the more commissions an agent typically earns, creating a motivation to pursue new clients and retain existing ones.

In the context of selling insurance, agents often rely on commissions as their main source of income, making them essential for their motivation and business sustainability. This financial incentive not only encourages agents to increase sales but also helps align their interests with the company's goals, as they are rewarded for bringing in new business.

Other choices, such as high termination fees, lower commissions, and mandatory training sessions, do not provide the same incentive. High termination fees may discourage agents from leaving a company, but they don’t actively motivate policy sales. Lower commissions would diminish the financial rewards and could demotivate agents. Mandatory training sessions are typically a requirement for agents to improve their skills and knowledge, but they do not directly incentivize sales output.