American Agency System

(redirected from Independent Agency System)

American Agency System

A way to sell insurance whereby a self-employed individual or an independent company offers policies through different, competing insurers. This person or company is responsible for finding potential policyholders and often explains the advantages and disadvantages of individual policies. If a client buys a policy, the person or company receives a commission from the insurer. The advantages to the American agency system are that it keeps costs down for insurance companies (because they do not have to pay for marketing themselves) and provides potential policyholders a wider array of options. It is also called the independent agency system.
References in periodicals archive ?
The young agents are our future leaders and the lifeline of the independent agency system as a whole," says Robert Rusbuldt, Big "I" president and CEO.
As a result, he understands the dynamic nature of the insurance marketplace, while sharing our strong commitment to the independent agency system.
I believe the independent agency system and its producers have the potential, and need, to be a more significant contributor to client success than any other partner their clients have.
NARAB will provide agents with a streamlined multi-state licensing process, while protecting states' rights and the independent agency system," said Gentile.
While we often reflect on the virtues of the Independent Agency system and the value agents bring to each community that they serve, this is truly a time when we recognize just how fortunate we are to enjoy so many wonderful partnerships throughout our territory and appreciate how much we can accomplish by working together.
In January 1999, Agents Council for Technology (ACT) was constituted by the Independent Insurance Agents and Brokers of America (IIABA or the Big I ) with the aim of offering a candid, action-oriented forum to address the critical workflow and technology issues facing the independent agency system.
Far from contracting, the independent agency system is growing.
Bishop, chairman, president and chief executive of The Motorists Insurance Group, called the affiliation of the two mutual insurance companies "an excellent fit for both Phenix Mutual and our group of companies" because "Phenix Mutual's associates share our group's values, management philosophy and believe strongly in the independent agency system.
About 60 percent of the increase, or the equivalent of about $12 billion, was due to the independent agency system, the CIAB said.
Since its inception, the company has remained committed to the Independent Agency System.
The principal distinction between independent agency and exclusive dealing is the agent's ownership rights to the customer list under the independent agency system.
Main Street America is also an investor in the new independent agency system Consumer Agent Portal.
Full browser ?