Property and Casualty Insurance Practice Exam

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Get prepared for your Property and Casualty Insurance Exam with flashcards and multiple choice questions, complete with hints and explanations. Equip yourself with the knowledge and confidence needed to excel!

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What is a primary advantage of using independent agents over captive agents?

They are paid higher salaries
They can offer a broader range of products
They have exclusive contracts
They have less responsibility for client relations

The correct answer is: They can offer a broader range of products

Independent agents represent multiple insurance companies and have the ability to offer a wider variety of products tailored to the specific needs of their clients. This flexibility allows them to compare policies across different insurers, which can lead to better coverage options and pricing for the customer. In contrast, captive agents are tied to a single insurance provider and can only sell that company's products. This restriction limits their ability to provide a diverse range of offerings that might better meet the different requirements of clients. The advantage of a broader product selection is significant as it enables independent agents to cater to unique situations and preferences, enhancing client satisfaction and potentially leading to greater loyalty and retention.