What is a Captive Agent?
The captive agent is a fully licensed insurance agent that promotes the offerings of only one insurance company. Captive agents may choose to function as independent agents, or be associated with an insurance company as a full time employee. In either case, the captive agent only sells the types of coverage offered by the one insurance provider. While the captive agent can be found as both a full time employee or as an independent contractor, captive agents are more commonly directly connected with an insurance company. Along with the option of being a full time employee of the company, insurance agents may choose to negotiate a working agreement that allows ample commissions on sales of policies provided by the insurance company. In return for the enhanced rate of commission, the captive agent will commit to only representing the coverage offered by the insurance company. This is in contrast to the usual practice for independent agents, who often are authorized to write policies for s
A captive agent generally works for just one life insurance company – and is usually forbidden from offering other company’s products. The benefit for the agent is that the company provides them with leads – potential clients; the disadvantage for the potential client is that she or he will only hear about one company’s offerings. Independent agents generate their own leads – and can place business where it is most appropriate for the client. Be VERY careful when you are being marketed by a captive agent – even if you met them at your bank.
A Captive Insurance Agent works only for one company. Even if you like that agent or their service, the company they represent will never change. If your rates increase, which they do for every insurance company from time to time, you have no other options with that agent. So you’ll have to go Insurance Shopping again to find what you need. What is an Independent Insurance Agent and what makes them better? An Independent Insurance agent is licensed by the State of Arizona the same exact way as your captive agent is. However we represent many Insurance Carriers. This is good for you because we can find the Best Rate and the Best Policy to suit your needs! Choose an agency that is looking out for your best interest. Not the best interest of the company they represent!
