1. Insurance Terms & Definitions/
  2. Insurance Terms Starting With C

Captive Agents

What are Captive Agents?

Captive Agents may refer to individuals or organizations that are hired by a single insurance company to work exclusively for that company. They are usually paid a base salary and/or commission for their services. They are expected to sell only the policies of the company they are contracted to, and they typically receive more training and support than independent agents.

Captive Agents in More Detail

Captive Agents are typically highly knowledgeable about the policies they are selling and are able to help customers understand the coverage they need and how to best use it. They may also provide personalized service to customers, helping them customize their policies to meet their individual needs. They can often provide customers with discounts and other incentives that are not available through independent agents.

In most cases, the captive agent is required to have a state license, and they may also be required to complete continuing education courses in order to stay up-to-date with changes in the industry. They may also be required to pass a test in order to sell certain types of insurance policies.

Due to the close relationship between the captive agent and their insurance company, they may have access to special rates or coverage options that are not available to independent agents. They may also be able to respond to customers’ needs more quickly than independent agents.

Overall, Captive Agents provide a valuable service to their customers and their insurance companies. They are an important source of knowledge and guidance for customers looking to purchase insurance, and they can provide personalized service and discounts that are not available elsewhere.