What distinguishes a direct writer from an exclusive agent?

The distinguishing characteristic that sets a direct writer apart from an exclusive agent is that both represent only one insurer. A direct writer typically portrays the insurance company itself and may sell policies directly to customers, often through various channels such as online platforms or company-owned offices. They focus solely on the products offered by their own insurer.

In contrast, exclusive agents work for one insurer but can only sell that company's products. This means they provide more personal service and build strong relationships with their clients, but they still do not have the flexibility to offer products from multiple insurers, which differentiates them from independent agents.

The other options describe either characteristics that are not applicable to direct writers or misrepresent their functions. For instance, direct writers do not represent multiple insurers, and they do require licensing to operate legally within the insurance market. Additionally, exclusive agents do not sell insurance through any company; rather, they are limited to the products of the one insurer they represent. Therefore, understanding that both direct writers and exclusive agents are tied to a single insurer helps clarify the distinction between these roles in the insurance industry.