Independent agents are actually employees of the insurer. True or False?

Independent agents operate as separate entities that represent multiple insurance carriers rather than just a single insurer. This means they have the flexibility to offer a variety of policies from different companies, which allows them to serve the best interests of their clients by providing more choices and competitive pricing.

Since independent agents are not employees of any one insurer, they work on a commission basis and maintain control over their business operations and the clients they represent. This distinguishes them from captive agents, who are employed by a specific insurance company and promote only that insurer's products, thereby emphasizing that independent agents are indeed independent rather than being classified as employees of any insurer.

The other options suggest a different relationship between agents and insurers that does not align with the standard practices in the insurance industry, making the clarification regarding the status and operational framework of independent agents essential for understanding how they function within the market.