How Do I know If I want to be A captive or independent?

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An agent is a person who generally acts on behalf of a person or group. In the insurance industry, an agent represents one or more insurers. As an agent, you're responsible for distributing the insurer’s products and their insurance policies. They can represent one or several different insurance companies.

Agents act as intermediaries, providing potential buyers with information from the insurance company or companies that they represent.They also have the ability to bind the insurers into the policy contracts. The fact that they can bind the insurer because they represent the company is one of the key aspects in terms of what makes an agent an agent.

There are two types of insurance agents: 

Captive Agents

Captive agents work for one insurance company either full-time or as independent contractors. They may receive operational support such as an office or an administrative staff from the insurance company that hires them. 

Since captive agents typically works on behalf of a company, they typically are under a non-compete contract and unable sell any insurances for themselves or any other company without breaching the hiring contract. 

In some cases, they get referrals and leads on potential clients from the insurer or 3rd party.

Captive agents tend to be extremely knowledgeable about the insurance products that are being offered by the insurer that they represent because those are the only products that they sell. 

Therefore, they are able to provide clients with very detailed and up-to-date information about the coverage they are selling but could be less aware of other products in the broader marketplace.

Independent Agent

Independent agents work with a number of insurers and since they are not tied down to just one company, they are often able to offer a wider range of insurance products. This means that they are able to offer a wider distribution network for insurance companies than captive agents which tend to be a great advantage for both agent and client. 

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As an Independent agent, you'll have the authority to quote and issue insurance policies on behalf of the insurer(s) you represent, principally, through those insurer systems. 

Some Independent agents offer additional services to their customers such as claims support, a review of other insurance policies, and advice. 

Independent agents are very similar to insurance brokers, however, because their duty is to the insurer and not to the clients, limits to what they can offer a client do exist.

What is the difference between an Independent Agent and a Broker? 

The primary difference between an Insurance Broker and an Insurance Agent is who each represents. While a broker represents the insurance buyer, an agent represents one or more insurance companies.

We are honored to help you in your career endeavors! If an independent agent sounds like the best choice for you, we would love to speak to you about joining the TXBIL team. Our agency services several areas throughout the Nation. 

* TXBIL agency offers both Property & Casualty and Health & Life components of   insurance for our customers

* We work with several carriers to give our customers the best options 

* We offer ongoing support to our partners 

* Remote work

* Competitive commission structure

* And So Much More