(i) Either a “Direct Writer” or an Agent that has agreed to sell Insurance for only one Company or fleet. (ii) Either a sales representative of a Direct Writing Insurer or an outside Agent who has agreed to sell Insurance for only one Insurer.
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An agent who represents one insurance company exclusively.
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Captive agents, also known as exclusive agents or direct writers, are usually restricted to representing only one insurance company and are restricted contractually from selling insurance for another company. The best known of this type company is State Farm. Captive agents may be independent contractors, that is, self-employed, or they may be employees of the company they represent. (See Direct Writers).The goal of the captive agent is to develop business for his or her parent company. In exchange, the insurance company typically provides the captive agent with an office allowance to cover rent, utilities, and other office expenses. In addition, most captive agents are able to participate in the company’s retirement plan and receive life, health, and other benefits. Captive agents also receive periodic training from the parent company on new products and selling skills.The number of captive agents has been slowly declining as insurance companies look for ways to cut costs and streamline operations. Many companies that used captive agents have gone to a dual distribution system by adding independent agents. Another cost-saving move companies have employed is to go directly to the customer through advertising, inbound telemarketing, and the Internet. (See Agent).
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MEDICAL,USA: Individual who has agreed to sell insurance for only one company. Also called exclusive agent.