A characteristic of the direct writer system is that agents typically do what?

In the direct writer system, agents are employed by the insurance company itself and work directly for it. This means that they are not independent contractors but rather representatives of the insurer, focusing solely on promoting and selling products from that particular company. This structure allows for streamlined communication and brand consistency, as the agents convey the company’s values and offerings without representing competing products.

The nature of the direct writer system emphasizes the strength of the direct relationship between the insurer and the consumer, often leading to lower costs and simplified processes for policyholders. This is in contrast to independent agents, who would typically operate their own agencies and represent multiple insurance providers, allowing them to offer a broader range of products. In summary, the primary distinguishing feature of the direct writer system is the direct employment of agents by the insurer, aligning their goals closely with the company’s mission and objectives.