Louisiana P&C Adjuster Practice Exam

Which of the following statements regarding independent producers is true?

1. They work exclusively for one insurance company

2. They have the ability to sell insurance across multiple companies

3. They are non-licensed individuals who sell insurance

4. They primarily focus on claim adjustments

The correct answer is: They have the ability to sell insurance across multiple companies

Independent producers, often referred to as independent agents, have the ability to sell insurance products from multiple insurance companies. This flexibility allows them to provide clients with a variety of options tailored to specific needs. By representing various insurers, independent producers can compare policies, coverage options, and prices to find the best match for their clients, which enhances their value in the insurance market. In contrast, those who work exclusively for one insurance company are known as captive agents, which means they are limited in the choices they can offer clients. Non-licensed individuals selling insurance would not meet the legal requirements to operate in this role; insurance agents must be licensed to sell policies. Lastly, while independent producers may assist with claims, their primary role focuses on selling insurance products rather than primarily adjusting claims.