What is it called when business is forwarded from one agent to another because the first agent cannot place business with their own company?

The correct term for a situation in which business is forwarded from one agent to another because the first agent is unable to place the business with their own company is referred to as the "Proper Exchange of Business." This concept reflects the practice of agents collaborating to ensure that clients receive the necessary coverage, even if it is not feasible for the original agent to provide it through their appointed carrier.

This practice is important in the insurance industry as it promotes professionalism and allows for a broader range of options for clients. It ensures that clients are not left without coverage due to limitations of the agent's own portfolio, thus enhancing customer satisfaction and trust.

Other terms listed do not accurately describe this practice. For instance, 'Restraint of Business' refers to actions that restrict trade or competition, which is unrelated. 'Estoppel' is a legal principle preventing someone from arguing something contrary to a claim they previously made, often in relation to guarantees or obligations. Lastly, 'Unfair Inducement' pertains to unethical tactics used to persuade a client in insurance transactions, which is not relevant in the context of forwarding business between agents.