Direct writers are hired by individual companies. These agents usually receive a salary, or a salary plus commission. A direct writing company has complete control and ownership of its policies and renewals. Captive or exclusive agents represent one company and are paid a salary, commission, or a combination of both. A company who uses captive agents owns and controls its accounts, policy records and renewals.
Independent agents represent more than one company and work on a commission or a fee basis.
They are independent contractors who own a right to their accounts, policy records and renewals. Brokers represent policyholders, not insurance companies. Brokers are independent contractors who examine the insurance needs of their clients and then shop around for the best coverages. They work for commission, mostly in the property casualty insurance business. They must also pass an examination to obtain a state license.