Captive (Exclusive) Agent
An agent who represents only one insurer or one group of affiliated insurers, typically compensated by commission and sometimes salary.
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Practice This Concept
A captive insurance agent differs from an independent agent in that a captive agent:
Represents and sells products for only one insurer — A captive agent is contractually tied to a single insurer and sells that insurer's products exclusively. An independent agent, by contrast, represents multiple insurers and can place business with whichever company offers the best fit for the client. Distribution systems differ in how the agent is compensated, how much product choice is available to the consumer, and how much shopping the agent can do on the client's behalf, all of which matter to the consumer when choosing where to buy coverage. Both types of agents must be licensed.
National insurance concept
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