In an ordinary agency system, how does the agent operate?

Prepare for the Certified Financial Services Auditor Exam. Master key concepts with interactive quizzes and detailed explanations. Excel in your exam!

In an ordinary agency system, the agent operates from the company's office to sell policies. This arrangement provides agents with direct access to the company's resources, including marketing materials, training, and support from company staff. Being based in the company's office allows the agent to have close interaction with the company's operations and management, which facilitates better coordination in selling insurance products and addressing customer needs.

Agents working directly from the company's office can also take advantage of brand recognition and the established reputation of the company, which can help instill confidence in potential clients. This system is effective for building a relationship between the agent and the company, ensuring that the agent is well-informed about product offerings and company policies, enhancing the overall sales process.

In contrast, other operating methods, such as running from a home office, being completely independent, or utilizing an online platform, do not provide the same level of integration and support from the company, which can influence the effectiveness of sales in an agency setting.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy