Ace the 2026 Life & Health Insurance Exam – Insure Your Success Today!

In the insurance industry, agents are primarily classified as captive agents or independent agents, which reflects their roles and relationships with insurance companies. Captive agents represent a single insurance company, meaning they are dedicated to selling products from that one insurer. This often provides them with in-depth knowledge about the company’s offerings, policies, and procedures, and allows for a closer relationship with the insurer, which can enhance support and resources tailored to their needs.

On the other hand, independent agents represent multiple insurance companies and can offer a wider variety of products and coverage options to their clients. This flexibility allows independent agents to compare different insurers and tailor insurance solutions to better meet the diverse needs of their clients, fostering an environment that promotes competitive pricing and personalized coverage.

This dual classification highlights the structure of the insurance distribution system, emphasizing the different operational models that agents can choose, which impacts their sales strategies and customer service approaches. The other classifications—such as online vs. offline, career vs. support, and sales vs. claims—do not accurately capture the fundamental relationship agents have with insurers and the way they operate within the industry.