What type of agent owns an agency and has the authority to hire sub-agents?

The correct answer is general agent. A general agent is someone who not only owns an agency but also possesses the authority to hire sub-agents to work under them. This type of agent operates with a broader scope of responsibility and autonomy within the agency, allowing them to expand their business by recruiting and managing other agents.

General agents are also often involved in the day-to-day operations of the agency, giving them the capacity to make decisions that affect the overall function of the agency. Their authority includes not just contracting with insurers but also managing and supervising the activities of sub-agents, which can enhance the agency's performance and drive growth.

Other choices such as independent agents and specialized agents do not have the same authority to hire sub-agents. Independent agents often operate on a more autonomous basis, working on behalf of clients rather than managing an agency. Specialized agents focus on niche markets or specific types of insurance but do not carry the overarching responsibility of hiring and managing other agents. Brokering agents typically act as intermediaries between clients and insurance providers without ownership or managerial responsibilities regarding sub-agents.