An agent working exclusively for a single
firm. He or she is obliged to submit business only to that firm,
or at least give that firm first rights of refusal on the case.
Captive agents that are non-established are usually paid on a
combination of salary and commissions earned from selling the
policy contract. Also, the firm usually provides its captive
agents with an allowance for office expenses as well as employee
benefits such as pensions, life insurance, and health insurance.
The established captive agent is usually paid
exclusively on a commission basis. This type of agent will
tend to have more in-depth knowledge of that firm's policies,
however, he or she will hardly ever be equipped to offer the
industries' best price on any particular product offering.
Independent Agent Broker
Simply said, independent agents are
appointed to sell policies from many insurers. The agent is
independent from all insurers thus, the independent agent's
responsibility is solely focused on evaluating the client's
needs and the pricing of the product chosen.
While searching for the brokerage market's best place for a
client's business, independent agents pay all their own expenses
and keep their own records and earn their income from brokerage
commissions on the policies they sell.