Define: Captive Agent

A captive agent is an insurance agent who exclusively represents and sells insurance policies for a specific insurance company.

Unlike independent agents who can sell policies from multiple insurance companies, captive agents are bound to sell policies only from the insurance company they represent.

Captive agents can offer insurance coverage options from their specific insurance company, but they may not have access to policies from other companies that could potentially offer better coverage or rates.

Captive agents can be either employees or independent contractors of the insurance company they represent, depending on the specific arrangement.

Captive agents typically have limited authority to negotiate policy terms and conditions, as they are bound by the guidelines and underwriting rules set by their insurance company.

Yes, captive agents are required to disclose their affiliation with the insurance company they represent to ensure transparency and avoid any conflicts of interest.

Captive agents typically receive commissions and bonuses based on the policies they sell, similar to independent agents. However, the specific compensation structure may vary depending on the insurance company.

Captive agents can provide personalized advice based on the policies offered by their insurance company. However, it is always recommended to consult with multiple agents or professionals to ensure you receive unbiased advice.

Yes, you can file a complaint against a captive agent if you believe they have acted unethically or provided inadequate service. You can typically contact the insurance company they represent or the relevant regulatory authority to initiate the complaint process.