All of the following statements about the general agency system used for selling life insurance are true EXCEPT
A)A general agent is responsible for hiring,training,and motivating new agents.
B)A general agent is a salaried employee whose responsibilities are limited to selling life insurance.
C)A general agent may receive an allowance for the expenses of maintaining an agency office.
D)A general agent receives a commission based on the amount of business produced.

Question

Quizplus · Accepted Answer

A general agent is not a salaried employee, but rather an independent contractor who is responsible for recruiting, training, and motivating a sales force of agents. The general agent receives a commission on the business produced by the agents under their supervision, and may also receive an allowance for office expenses.

All of the Following Statements About the General Agency System