Ace the 2026 Property and Casualty Challenge – Insure Your Success!

Question: 1 / 430

In the independent agency system, what is the primary role of the agencies?

They serve as employees of a specific insurance company

They contract with multiple insurance companies

In the independent agency system, the primary role of the agencies is to contract with multiple insurance companies. This model allows independent agents the flexibility to offer a variety of insurance policies and coverage options from different insurers. As a result, they can better serve the diverse needs of their clients by providing tailored recommendations based on individual circumstances and preferences.

By working with various insurance carriers, independent agents can compare products, pricing, and terms, ultimately helping clients make informed decisions. This approach fosters competitive pricing and a wider selection of insurance products, enhancing the overall consumer experience.

The other options suggest limited affiliations or exclusivity with insurers, which does not align with the independent agency model that emphasizes choice and flexibility.

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They work solely on commission for a single insurer

They only represent non-profit insurance organizations

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