West Virginia Property and Casualty Licensing Practice Exam

What type of agent acts as an independent contractor representing multiple insurance companies?

1. Direct response agent

2. Independent agent

3. Captive agent

4. Solicitor

The correct answer is: Independent agent

An independent agent operates as an independent contractor who has the ability to represent multiple insurance companies. This type of agent has the flexibility to offer a variety of insurance products from different insurers, allowing them to tailor their recommendations based on the unique needs of each client. By working with various carriers, independent agents can provide clients with a broad selection of coverage options and potentially more competitive pricing, as they are not limited to the offerings of just one company. In contrast, other types of agents, such as captive agents, typically represent only one insurance company and are constrained to sell its products alone. Direct response agents may sell insurance primarily through the mail or online, and solicitors usually work under the authority of a licensed agent but do not have the same level of independence. Thus, the independent agent's role in the insurance industry is vital for consumers seeking diverse insurance solutions.