Which type of insurance agent is typically a salaried employee?

A direct writer is typically a salaried employee of an insurance company. This type of agent works directly for one insurance company and sells only its products. Their compensation generally comprises a base salary, which may be supplemented by bonuses or commissions based on performance metrics.

By contrast, independent agents operate as self-employed entities or work for brokerages, selling policies from multiple insurers and earning commissions based on sales. Exclusive agents, also known as captive agents, represent only one insurer but may not be salaried; they often earn commissions from the policies they sell. General agents oversee a broader scope of operations and may also work on a commission basis, rather than salary.

Understanding these distinctions is key to grasping the various relationships in the insurance industry, particularly the differences in compensation structures and employment models among different types of agents.