[I041]

independent agent
A property-casualty insurance producer who sells insurance as an independent contractor while representing one or more insurers of that agent's choosing on a commission basis, and who owns the expiration records of customers served. The independent status is further illustrated by the selling functions performed, which are not directed by the insurer, as would be the case if the agent were an employee. Those functions include contacting prospective insureds, effecting insurance, issuing policies, collecting premiums (in many or most cases), settling some losses of small amounts, and generally representing the insurers in the agent's community as a part of the American agency system. By contrast, the direct writing insurer directs the selling functions of its agents, known as exclusive agents, and owns the expiration records.

(See American agency system, direct writer, exclusive agent, agency, independent agency system, and insurance agent.)