Which of the following statements about independent brokers is NOT true?

Independent brokers operate in a unique manner within the insurance industry. They are not employees of specific insurance companies; instead, they work independently and usually represent multiple insurers. This independence allows them to offer a variety of insurance products and find the best options for their clients based on a wider range of choices.

Receiving commissions for the business they produce is a standard practice for independent brokers, as they earn income based on the policies they sell. They also maintain ownership of their client files, allowing them to provide continued service and support to their clients regardless of which insurance company the client ultimately chooses.

The incorrect assertion that independent brokers are employees of insurance companies is fundamental to understanding their role in the insurance market. This independence is what enables them to provide unbiased advice and tailored insurance solutions to clients, distinguishing them from captive agents who work for a single insurer.