What distinguishes a captive agent from an independent agent?

A captive agent is primarily an employee of one insurance company, which means they are focused on selling the products of that particular insurer. This relationship allows the agent to have in-depth knowledge of the company's offerings and may provide a sense of loyalty and dedication to that brand. Captive agents typically have access to training and resources provided by the insurer and are more aligned with the company's objectives, which can create a streamlined experience for the customer seeking comprehensive coverage from that specific provider.

In contrast, independent agents represent multiple insurance companies, giving them the flexibility to offer a wider variety of options to clients. This can benefit customers who may be looking for competitive pricing or specific policies that best suit their needs. Independent agents often work on a commission basis and are not bound to a single insurer, allowing them to provide unbiased advice and a broader range of solutions.

The other options imply misunderstandings about the roles: independent agents do not work solely for one company; they have the authority to represent different insurers, and their autonomy is one of their key characteristics. Additionally, independent agents are not limited in authority; they can negotiate plans and commissions with multiple companies, which is in contrast to the more restricted scope of captive agents who are generally expected to adhere closely to the policies and practices