A captive agent is an insurance agent who only sells insurance products for one company, as opposed to a number of different companies. Captive agents are not necessarily employees of the insurance company, but they might be. The insurance company pays them either in salaries, commissions, or a combination of both.
Captive agents are an alternative to independent agents. The latter work as independent contractors for insurance companies, and they are not restricted to working for just one company. The terms of the agreement between the captive agent and the insurance company can vary from company to company. Details, such as benefits and payment options, depend on the particular company. Insurance companies sometimes prefer captive agents over independent agents because captive agents do not help the competition and focus exclusively on the one company.
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