Which of the following statements about the exclusive agency system for marketing property and liability insurance is true?
A)Exclusive agents typically have complete ownership of policy expirations.
B)A higher commission rate is usually paid on exclusive agents' renewal business than on new business.
C)Exclusive agents represent several different insurance companies.
D)New exclusive agents usually start as employees and after a training period become independent contractors.

Question

Quizplus · Accepted Answer

New exclusive agents usually start as employees and after a training period become independent contractors. The other statements are not accurate. Exclusive agents typically have ownership of expirations, but not complete ownership. Commission rates are typically higher on new business than on renewals. Exclusive agents represent only one insurance company.

Which of the Following Statements About the Exclusive Agency System