Dev Gaymes · Texas-licensed life insurance agent ·
NPN 16654074
September 24, 2026 · 8 min read · Last reviewed November 2026
I have been both.I spent the first years of my career as a captive agent with two large insurers before going independent. I am biased toward independence, which is why I went that way. This page tries to say where captive agents genuinely do well, too. My background is documented here.
A captive agent represents one insurance company and sells that company's products. An independent broker is appointed with many insurers and compares across them. The premium for a given policy is the same either way, because Texas law bars an insurer from charging different premiums to people of the same class and hazard, and bars agents from rebating premium. What differs is how many companies look at your file before you buy.
Side by side
| Captive agent | Independent broker |
|---|
| Companies represented | One | Many, depending on appointments |
| Price for the same policy | Same premium | Same premium |
| If that company declines you | Sometimes able to place elsewhere through a brokerage arrangement; often not | Takes the file to another carrier |
| Product knowledge | Deep on one company's products | Broader, across several companies |
| How they are paid | Commission, and sometimes salary or benefits from the insurer | Commission from whichever carrier issues the policy |
| Where it matters most | Healthy applicants who like that company | Health history, large policies, business cases, annuities |
General description. Arrangements vary by company and by agent; ask any agent how they work.
Where captive agents genuinely do well
It would be easy to write this page as a case against captive agents. That would not be fair.
- Depth on one company. A good captive agent knows their company's products, riders and underwriting in detail, and that can be worth a lot if the company suits you.
- Strong single-company products. Some long-established whole life products come from companies that sell only through their own agents.
- Simple cases. A healthy applicant buying straightforward term coverage usually lands within a narrow price band wherever they buy, so the comparison matters less.
Where the difference shows up
The gap between the two appears in the cases that do not fit neatly into one company's guidelines.
- Health history. Every insurer writes its own underwriting rules. The same file can be Standard at one company and declined at another. In one recent file of ours, a client with a high BMI would have been declined by most carriers, was offered Table 6 by one, and was approved at Table 4 by the carrier we chose. Condition-by-condition detail.
- Nicotine and cannabis. Carriers disagree more here than almost anywhere. One of my 2026 clients, who used marijuana four times a week, was rated Standard tobacco by several carriers; the fourth carrier rated her Standard non-tobacco, and tobacco rates generally run two to three times non-tobacco.
- A decline you already have. An agent who represents one company cannot take your file anywhere else if that company says no, unless they have a brokerage arrangement. What a decline actually means.
- Annuities. Annuity contracts vary widely between companies, and appointments decide which ones you get to compare. More on choosing one.
What it changed in my own cases
I keep a casebook of the cases I place. Here is what moving a file between carriers did across the 39 in it for 2026.
| Measure | Cases | What it means |
|---|
| First carrier declined or postponed | 7 of 39 | All 7 placed elsewhere; 6 at Standard or better |
| Final offer better than the first | 21 of 39 | Moved to a better class or to day-one coverage at another carrier |
| First carrier was enough | 15 of 39 | Placed at the first carrier I approached, at the class it first offered |
| Final offer Standard or better | 38 of 39 | The other was Table 4 after a decline |
39 cases placed by DG Life Group in 2026, from the casebook. Cases I chose to record, all of them placed, so this measures what shopping changed, not the odds of placing a case.
Three of those files show the range. A man in his late 50s or early 60s with high blood pressure and a BMI around 37 was offered Table 4 and placed at Standard at the third carrier. A cancer history that every traditional carrier had declined was placed at Standard on the twelfth approach. And the marijuana case above went from tobacco to non-tobacco at the fourth.
The honest other side: in 15 of the 39, the first carrier I approached was the one that issued the policy, at the class it first offered. A captive agent with that company could have done the same for those clients. I picked that company after checking several, which is the part a one-company agent cannot do.
The part people miss about price. Using an independent broker does not get you a discount, and using a captive agent does not cost you extra. The premium for a given policy is identical through any channel. The saving, where there is one, comes from a different carrier classifying you more favorably, not from a cheaper version of the same policy.
Five questions to ask any agent
- “Which companies are you appointed with?” One company, a handful, or dozens. “Independent” is not a licensed designation, so ask for specifics.
- “If your first choice declines me, what happens next?” The answer tells you how much searching you are actually getting.
- “How are you paid on this policy?” Commissions vary by company and product for independent brokers too, and a straight answer is a good sign. Mine: a commission from the carrier that issues the policy, no fee to you, and I will tell you the amount if you ask.
- “Can I see the comparison you ran?” Quotes from several companies at the rate class you realistically qualify for.
- “What is your National Producer Number?” Every licensed agent has one, and you can verify it through the NIPR database and the Texas Department of Insurance.
Why I went independent
As a captive agent I could only offer what my company offered. When a client's health history meant my company rated them heavily or declined them, the honest answer was often that a different company would treat them better, and I could not take them there. That is the whole reason I went independent. For a healthy client buying simple term coverage the difference is small, and I will say so. For anyone with a health history, a large policy or a business case, it is usually the difference that matters most.
Frequently Asked Questions
What is the difference between an independent broker and a captive agent?A captive agent represents one insurance company and can sell only that company's products. An independent broker is appointed with many insurers and compares across them. The premium for a given policy is the same either way, because Texas law bars an insurer from charging different premiums to people of the same class and hazard, and bars agents from rebating premium. What differs is how many companies look at your file before you buy.
Does an independent broker cost more than a captive agent?No. Neither charges you a fee, and the premium for a specific policy from a specific company is identical through any channel, because Texas law bars an insurer from charging different premiums to people of the same class and hazard, and bars agents from rebating premium. Where a broker can lower what you pay, it is by finding a different company that classifies you more favorably, not by discounting the same policy.
Is a captive agent ever the better choice?Yes. A good captive agent knows one company's products and underwriting in depth, some strong whole life products are sold only through a company's own agents, and for a healthy applicant buying simple term coverage the price difference between companies is usually small. The case for an independent broker is strongest with a health history, nicotine or cannabis use, a prior decline, a large policy, a business case or an annuity.
Can a captive agent place my policy with another company?Sometimes. Some captive agents have brokerage arrangements that let them place a case with another insurer when their own company declines it, and many do not. Ask directly what happens if their company says no, because the answer tells you how much searching you are actually getting.
How do I know if an agent is really independent?Ask which companies they are appointed with. Independent is not a licensed designation, so anyone can use the word. An agent appointed with one or two companies is effectively offering a short list; one appointed with dozens can run a genuine comparison. You can verify any agent's license with their National Producer Number through NIPR or the Texas Department of Insurance.
Do independent brokers have a conflict of interest?They can, and it is worth being clear-eyed about. Commissions vary by company and by product, so a broker has an incentive that does not always line up with yours. The protection is the same as with any agent: ask how they are paid on the policy they recommend, and ask to see the comparison they ran. A straight answer to both is a good sign.
Sources- Texas Insurance Code section 544.052: no unfair discrimination between individuals of the same class and essentially the same hazard in premiums, fees or rates.
- Texas Insurance Code section 1702.102: insurers and agents may not rebate life insurance or annuity premiums or offer inducements not specified in the policy.
- Case figures: DG Life Group casebook, 39 cases placed in 2026, with identifying details removed. Tobacco pricing: DG Life Group sample rates.
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