Independent Agent
An agent who represents multiple insurers and is paid commission on the business placed with each.
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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
A life insurance producer who contracts to sell policies exclusively for one insurer is known as a:
Captive (exclusive) agent — A captive or exclusive agent represents only one insurer under contract and submits all business to that company. An independent agent, by contrast, represents multiple insurers and can place coverage with the company that best fits the client. Distribution structure affects product options, loyalty requirements, and how business is placed, but all producers must still meet licensing and disclosure obligations under California law.
National insurance concept
- General InsuranceA captive insurance agent differs from an independent agent in that a captive agent:
- General InsuranceA life insurance producer who contracts to sell policies exclusively for one insurer is…
- General InsuranceAn insurance agent who represents several different insurers and can place a client's c…
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