Which type of agency allows agents to work on a commission basis while representing multiple insurers?

The independent agency system is the correct choice because it allows agents to represent multiple insurers and work on a commission basis. In this system, agents are not bound to a single insurance company; instead, they can offer a variety of insurance products from different carriers. This flexibility enables them to better meet the diverse needs of their clients by comparing policies and coverage options from a range of providers, thereby ensuring that clients have access to the best possible solutions.

In contrast, in a direct writer system, agents typically represent only one company and do not have the ability to offer products from multiple insurers. Similarly, the exclusive agency system restricts agents to selling insurance for only one insurer or a group of affiliated insurers, which limits their ability to provide a broader range of options. The direct response system does not involve agents at all; instead, it allows consumers to purchase insurance directly from the insurer, usually through online platforms or advertisements. This system bypasses traditional agency setups entirely.