What is the difference between independent and captive insurance agents?

Insurance agents can be either independent or captive. Independent agents are individuals who are licensed to represent a number of different insurance companies. Captive agents are employed by one insurance carrier and represent exclusively their services. The main difference between the two is the level of choice they can offer customers. Independent agents typically have a range of options to offer customers as they represent multiple insurance companies. This means customers can get multiple quotes for coverage and make a better-informed decision about which insurer they prefer. Captive agents, on the other hand, have fewer options available since they only represent one carrier. As such, they are typically more knowledgeable about the particular insurance products of that carrier and can offer more detailed information about the various policies and coverage options. In Washington, insurance agents must be licensed by the Washington State Office of the Insurance Commissioner in order to legally provide insurance services. Both independent and captive agents must complete training courses and pass an exam in order to receive their license, which is valid for two years.

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What is the difference between independent and captive insurance agents?

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