The independent agency system:
A) is doomed because agent's commissions are too high relative to direct writers
B) means the agent rather than the insurance company "owns" the business
C) is not a good career path for most college graduates because the system is doomed to extinction
D) is growing rapidly to the point of eliminating the direct writers

Question

Quizplus · Accepted Answer

In the independent agency system, the agent owns and operates their own business, while representing multiple insurance companies. The agent does not own the insurance policies, but rather is a representative of the insurance companies. This can provide more flexibility and options for customers, but also puts more responsibility on the agent to manage their business effectively.

The Independent Agency System