Before you read another agency listing, you need to know which side of this line it's on. It changes who you sell for, who owns your customers, and how much you control.
Nearly every agency listing quietly assumes you know this term. If you don't, you can accept a job without realizing what you've agreed to. Here's the difference in plain language.
A captive agent sells for one insurance company, usually exclusively. Think of an agent whose business is built around a single carrier's brand and products. The company often provides more structure: training, brand recognition, and sometimes leads or support.
In exchange, you have fewer choices. If the carrier's product isn't right for a customer, you generally can't offer a competitor's. In many captive arrangements, the company also has more say over your customer relationships and what happens to them if you leave. This varies a lot, so read the agreement.
A non-captive agent can offer products from multiple carriers. That lets you shop around for each customer, which many agents find more honest and easier to sell. It also means you're more responsible for building your own pipeline, learning several carriers' systems, and managing those relationships.
Captive can be a good fit for someone who wants structure and a clear path while learning. Non-captive can suit someone who wants flexibility and is comfortable running more of their own business. There's no honest way to say one pays more, because that depends on the agency, the carrier, and the work you put in.
When we vet an agency, we record which model it uses so you know before the interview, not after.