An independent agency system for selling insurance

Question

Question: An independent agency system for selling insurance

Options:

1.  Is used by direct writing companies such as State Farm Insurance
2.  Is used only in life insurance
3.  Requires agents to be paid a flat salary with little in the way of commissions
4.  Uses agents who own their own business, receive primarily commission income and own their list of clients
5.  Is represented by companies writing mostly reinsurance

Answer 1

4. Uses agents who own their own business, receive primarily commission income and own their list of clients

An independent agency system for selling insurance uses agents who own their own business, receive primarily commission income and own their list of clients.