Which of the following describes the Independent Agency System?

The Independent Agency System is characterized by the ability of one independent agent to represent multiple insurance companies. This flexibility allows independent agents to offer a wider array of insurance products and options to their clients, as they can shop around among different carriers to find the best coverage and prices for their clients’ needs.

By being affiliated with several insurers, independent agents can tailor their offerings based on the unique requirements of each client, making them valuable resources for consumers seeking personalized insurance solutions. This model also enables agents to maintain a degree of autonomy and independence in their business operations, differing from captive agents who are limited to a single insurer.

Choosing this option illustrates an understanding of how independent agents operate within the insurance market, contrasting with other systems where representation is more restricted.