POL California Life: The Insurance Marketplace Practice Test

An independent agent is an individual or business that represents multiple insurance companies and can offer a variety of insurance products from different insurers. This flexibility allows them to compare policies and coverage options across different providers to find the best fit for their clients' needs. They operate independently and are not tied to a single insurance company, which enables them to serve clients who may have unique preferences or requirements.

In contrast, exclusive agents, captive agents, and brokering agents typically have different relationships with insurers that limit their ability to represent multiple companies. Exclusive agents usually represent one insurer, while captive agents may be aligned with a specific company but can still sell different products offered by that company. Brokering agents may not be as common a term in this context, and while they might facilitate agreements between clients and insurers, independent agents are a more recognized entity in dealing with multiple insurers. Thus, the defining characteristic of an independent agent is their capability to work with various insurers, providing a wider range of options for customers.