Douglas Silber MBA540 Case Study 8 April 24, 2011 I certify that I am the author of this assignment and that any assistance I received in its preparation is fully acknowledged and disclosed in the assignment. I have also cited any sources from which I have used. I also certify that this assignment was prepared by me specifically for this course. 1. Which type of insurance company, life or auto, is more likely to use the in-house agent? Explain. (Be sure to discuss why the in-house agent faces product restrictions and is not always paid on a pure commission basis.) Auto insurance companies are more likely to use the in-house agent as employees working for auto insurance companies are not independent agents. Brickley et al (2009) writes, “Some insurance companies use independent agents to sell their policies. These agents are paid solely on commission and are often allowed to sell the products of other companies (the agent presents the customer with a choice of plans across multiple companies)”. (Brickley et al, 2009, p. 401).
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