General Insurance✓ Verified · outline & fact-checked · Sep 2026Difficulty 1/5
A life insurance producer who contracts to sell policies exclusively for one insurer is known as a:
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
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.
Why the other options are wrong
- A) A surplus line broker places coverage with nonadmitted insurers; it is not a single-company exclusive relationship.
- B) A solicitor is an employee who assists an agent or broker, not an exclusive producer for one insurer.
- D) A third-party administrator handles claims and administrative services for insurers, not exclusive sales.
Memory hook
Captive = one company, one team. Independent = shop around among many carriers.