An insurance distribution system within which independent contractors, known as agents, sell and service Property-Liability Insurance solely on a commission or fee basis under contract with one or more insurers that recognize the agent's ownership, use, and control of policy records and expiration data.
Type of Property and Liability Insurance marketing system, sometimes called the American Agency System, in which the agent is an independent business person representing several companies. The Agency has legal right to income from the expirations and renewal rights to the business, and the agent is compensated by commissions.