Captive Agent Law and Legal Definition
Captive agent is a representative or a licensed insurance agent of a single insurer or fleet of insurers who is obliged to submit business only to that company, or at the very minimum, give that company first refusal rights on a sale. A captive agent is paid by that one company either with a combination of salary and commissions or with just commissions. The captive agent can act as a full-time employee or an independent contractor with office space and benefits by the employer. Captive agents have in-depth knowledge of his/her particular company’s insurance products. Most of the insurance companies utilize its captive agents to sell certain policies or meet certain sales quotas.