David is a successful independent insurance agent.Recently,one of the life insurance companies with whom he places business offered him a special financial arrangement.If David meets sales targets,he will receive large bonuses.He will also be able to recruit and train sub-agents and receive an over-riding commission based on the amount of life insurance the sub-agents sell.Based on this description,David is a(n)
A)insurance broker.
B)personal-producing general agent.
C)direct writer.
D)multiple life exclusive agent.

Question

Quizplus · Accepted Answer

David is an independent agent who is being offered a financial arrangement to meet sales targets and recruit sub-agents. This aligns with the role of a personal-producing general agent, who typically earns bonuses and overrides for meeting sales targets and managing a team of sub-agents. Insurance brokers typically represent multiple insurance companies and offer a variety of insurance products to their clients, while direct writers are agents who work exclusively for one insurance company. Multiple life exclusive agents focus on selling life insurance policies from multiple insurance companies, but do not typically have the ability to recruit and train sub-agents. Therefore, the best choice is B.

David Is a Successful Independent Insurance Agent