What Is Captive Agent? Definition

Why it matters

Captive agents get deep product training and brand support from one carrier, but they cannot offer other companies' policies. A family sees fewer options, though one company may fit well. For agents, captive deals can limit book ownership. Compare it to independent work before choosing. Families can ask the agent directly whether other companies are available.

Source: law.cornell.edu

Where we use this term

Related terms

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.
Career Agent: A career agent is an agent who works mainly for one insurance company, often as an employee or in a closely tied role, and sells that company's products. Setups vary by company.
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: An agency is a business licensed to sell insurance through its agents. It can hold carrier contracts, employ or contract with producers, and in many states needs its own entity license.
Book Of Business: A book of business is the set of policies and customers an agent has sold and serviced. It is the source of renewals and future sales.

All 241 terms

Why it matters

Where we use this term

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