Which type of agent represents only one company and is compensated by commissions?

The correct answer is that an exclusive or captive agent represents only one insurance company and is typically compensated through commissions based on the policies they sell. This type of agent develops a deep understanding of the products offered by a single insurer, allowing them to provide specialized knowledge and tailored service to clients. Their focus on one company means that they can effectively communicate its benefits and features, which can lead to higher conversion rates with customers seeking coverage.

In contrast, independent agents represent multiple insurance companies, giving clients a wide range of options but working with various commission structures. Surplus lines agents work with insurers that are not licensed in the state to provide coverage for unique risks, while general agents often operate at a higher level of distribution and may manage multiple agents. Each of these roles has distinct compensation structures and client representation characteristics that differ from the exclusive nature of a captive agent's role.