American Agency System
Definition of "American agency system"
Marketing of insurance through independent agents; also called independent agency system. Independent agents usually represent several insurance companies and try to insure the risk according to availability of coverage and most favorable price. Independent agents are paid a commission in the form of a percentage of the premiums generated by the policy sold. They own all the records of the policies sold and have the right to solicit renewals. They are not restricted to maintaining business with just one company and can transfer the business upon renewal to another company.
Popular Insurance Terms
Means of selling and servicing property and casualty insurance through agents who represent different companies. The agents own the records of the policies they sell. ...
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12-month period from the date of issue of a policy as stated in its declarations section. ...
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Total of operating income plus realized capital gains (losses) from investment and underwriting operations minus federal income taxes. ...
Circumstance in which no agent is servicing a debit. ...
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