What Is Agency? Definition | Epic Life Glossary

Why it matters

For a family, the agency is the business behind the person who answers the call. For an agent, joining or owning one affects pay, support, and control of the book. An agency is not an insurance company. Policies are issued by carriers, not the agency. Ask who the agency represents and which carriers it works with.

Source: law.cornell.edu

Where we use this term

Related terms

Agent vs Broker: An agent usually represents an insurance company, while a broker usually represents the buyer. In practice, many licensed producers act as both, and state law defines the terms.
Agency Owner: An agency owner runs an insurance agency as a business, holds or arranges carrier contracts, and may recruit and manage agents. The owner is responsible for licensing and compliance.
Independent Agent: An independent agent is licensed to sell products from more than one insurance company and is not tied to a single carrier. Most independent agents are contractors, not employees.
Captive Agent: A captive agent sells the products of one insurance company, or a small group of related companies, under an exclusive agreement. The company usually controls the agent's products and rules.
Independent Marketing Organization (IMO): An IMO, or independent marketing organization, is a company that recruits independent agents and gives them access to carrier contracts, training, leads, and support. It is not an insurance carrier.

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Where we use this term

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