What kind of system involves a company hiring its own customer service representatives to work directly for the company?

The correct choice is a system where a company employs its own customer service representatives who work directly for that company, which is known as the direct writer system. In this structure, the insurer controls the sales force entirely, allowing for a more streamlined approach to customer service and underwriting processes. This can lead to a strong brand consistency and personalized service, as representatives are directly tied to the company's goals and policies.

In contrast, independent agencies work with multiple insurers and do not hire representatives directly for one specific company. The direct response system involves selling insurance directly to customers, typically through online or direct marketing methods, bypassing the need for agents altogether. The exclusive agency system also differs, as it typically involves agents who represent a single insurer but do not work as direct employees of that insurer. This means their loyalty is divided based on the needs of the clients they serve, rather than being fully aligned with a single company's policies and brand identity.