An insurance company hires its own producers as employees. The producers are paid a salary, plus a sales-based commission. Which method of insurance distribution does this insurer use?

General agency involves independent agents who have the authority to represent multiple insurance companies. These agents operate more autonomously, often receiving commissions based on sales. They are not salaried employees of any single insurer, which distinguishes this model from direct writing.

Exclusive agency refers to agents who work solely for one insurance company but are not employees. They typically earn commissions from the sales they generate. Unlike direct writers, exclusive agents do not receive a salary, which means their income relies entirely on their sales performance rather than a fixed salary structure.

Independent brokerage involves agents who represent multiple insurance companies and operate independently. They earn commissions for the policies they sell, but they do not have an employer-employee relationship with any single insurer. This independence allows them to offer a variety of products from different insurers, contrasting with the direct employment model of direct writing.