Identifying the Independent Agent ¾ Independent Agency System: Means the selling and servicing of insurance through agents who represent different companies. the agents own the record of the policies they sell. ¾ Independent Agent: Contractor who represents different insurance companies and who searches the market for the best place for a client's business. The independent agent, who owns the records of the policies sold, is not controlled by any one company, pays agency's expenses out of commissions earned, and is responsible for maintaining employee benefits. ¾ Captive Agent: Representative of a single insurer or fleet of insurers who is obligated to submit business only to that company, or at the very minimum, give that company first refusal rights on a sale. In exchange, that insurer usually provides its captive agents with an allowance for office expenses as well as an extensive list of employee benefits such as pensions, life insurance, health insurance, and credit union. ¾ Exclusive Agency System/Agent: See captive agent.