Which statement describes a captive agent?

A captive agent is defined as an agent who represents only one insurance company or plan. This means that their services and products are limited to what that single entity offers. Captive agents are typically trained and authorized by the plan they represent, allowing them to have in-depth knowledge of that plan’s offerings and compliance requirements. By focusing on one company or plan, captive agents can provide a tailored approach to potential clients and ensure they are well-informed about the specific products available.

The other choices depict varying models of agency practice but do not align with the definition of a captive agent. An agent working independently across multiple plans indicates a more versatile role known as an independent agent, while being limited to employer group marketing suggests a focus that doesn't encompass the full range of insurance consumer engagement that a captive agent has. Additionally, the inability to advertise freely does not pertain specifically to captive agents; it may be relevant under certain regulatory conditions for various types of agents but does not define the captive agency model itself.