Life & Health Insurance Practice Exam

What type of agents works for a specific insurance company?

1. Independent Agents

2. Captive Agents

3. Career Agents

4. Support Agents

The correct answer is: Captive Agents

Captive agents represent and sell insurance products for a specific insurance company. They are contracted by that company and usually promote the company's products exclusively. This means they have a deep understanding of the products and services offered by their employer, allowing them to provide tailored advice and assistance to clients based on the company's offerings. Captive agents benefit from formal training provided by the insurance company, which helps them to effectively communicate the features and advantages of their products. This relationship also often facilitates stronger support from the insurer in terms of marketing and administrative assistance. While independent agents work with multiple insurance companies and can offer a wider range of products, captive agents focus solely on one insurer. Career agents typically refer to a similar role as captive agents but are often explicitly employed by the company rather than being independent contractors. Support agents provide administrative or customer service support rather than directly selling insurance policies. This distinction emphasizes the unique role that captive agents occupy in the insurance industry, working closely with a single company to serve its clients.