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I believe that the insurance companies do it to reduce their workload. In theory, if you submit all the correct information, their quote through each agent would be exactly the same. So if you "price shop" by contacting six agents, they end up with the same quote out six times. There is paperwork required for each quote, they have to track it, etc.
If you have have trouble with a particular agent, and want to get the same quote you already got but buy through another agent, you can ask the new agent you select to submit an agent change letter (I think, I am not really an expert on this stuff), and if you have any justification at all, I believe the company will sell to you through your requested agent.
The only place this system can break down is if your agent does not ask for quotes from all eight companies. And frankly, in real life, that is what happens, because an experienced agent will know that company X will not write Skymasters, or will not write them economically. But what I am talking about is the situation where an agent finds the highest quote, and tells you only about that one, to increase their commissions. In other words, a crook.
Again, in real life, I don't think this happens much, because you will talk to your friends, find out you are paying a high rate, and use your friend's agent the next year. So agents that did this would be out of biz quickly.
It does seems to be a strange system compared to other types of business that we all do...
Kevin
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