What must agents in an independent agency system do to successfully operate their business?

To operate successfully in an independent agency system, securing appointments from insurers is essential. This means that independent agents must establish relationships with various insurance companies to sell their products. Each insurer requires agents to be formally appointed to market and sell their policies, thus allowing agents to represent multiple companies and provide options to their clients. This appointment process ensures that agents are authorized to conduct business on behalf of the insurers and helps build a diverse portfolio of insurance products to meet the varied needs of their clientele.

The other options may contain elements relevant to agency management or operational strategies but do not capture the foundational requirement for independent agencies to function. Adhering strictly to company guidelines is more relevant to career agents working within a single company's framework, while limiting clientele by demographic could restrict business growth and opportunities. Employing additional agents for support might help with workload and expansion but is not a basic requirement for operation. Therefore, the appointment from insurers is crucial in establishing the agency's ability to offer diverse coverage options and grow its business effectively.