What defines an independent agent within the independent agency system?

An independent agent is defined by their capacity to represent multiple insurance companies, which allows them to offer a variety of insurance products to their clients. This flexibility is a fundamental characteristic of independent agents, as they can provide tailored solutions that meet the diverse needs of customers by accessing different carriers and their policies. This contrasts with agents who exclusively sell the policies of a single insurance company, who are typically considered captive agents. By representing multiple insurers, independent agents can compare options and find the best coverage for their clients, highlighting the value of choice and competition in the market. This ability to act on behalf of various companies distinguishes them within the insurance industry.