What type of agency is defined as one where the producer represents only one insurance company?

The type of agency where the producer represents only one insurance company is known as an exclusive agency. In this arrangement, agents have a contractual relationship with a single insurer, providing them with the ability to sell that insurer's products and policies exclusively. This structure allows the insurance company to maintain a strong brand representation and offers its agents training and support, which can lead to deep knowledge of the specific products they sell.

Agents in an exclusive agency typically benefit from a strong backing by the insurance company, which can include marketing support and access to specialized resources. This can foster a closer working relationship and a deeper understanding of the company's offerings, allowing the agent to meet clients' needs effectively within that particular insurer's framework.

In contrast, independent agencies represent multiple insurers and therefore can provide clients with a variety of options to choose from, while captive agencies primarily focus on the employment relationship with a single insurer, which might not have the same flexibility for agents in managing multiple products. General agencies, on the other hand, tend to operate within a broader network of relationships and often do not focus on a single company.