What is the definition of Agent?

An Agent (insurance agent) is someone who sells insurance and other related products. There are two kinds of agents - the independent agents and the exclusive or captive agents. Independent agents are "freelancers", so to speak. They may carry a number of products from more than one insurance company. They are self-employed and only earn on commission. Captive or exclusive agents, on the other hand, are recruited by the insurance company and sell its products exclusively. These captive agents may either be directly employed by the insurance company and are salaried, or they may also work on a commission basis. Captive agents may also earn using a combination of salary and commission.

For an agent to be able to sell insurance, he has to have a license from the state.

• Competitive State Fund
• Excess and Surplus Lines
• Commission
• Businessowners Policy / BOP
• Employer’s Liability