Which of the following statements about the career agency distribution system is NOT correct?

The statement indicating that PPGAs are commonly hired to manage career agencies is not accurate because personal producing general agents (PPGAs) primarily function as independent agents who focus on their own production rather than managing a team or an agency. In a career agency distribution system, career agents are generally employed by the insurance company and work within a structure that does not typically require the involvement of PPGAs.

Career agencies are usually owned by the insurance company and feature agents who are considered captive, meaning they are tied to a specific insurance provider, allowing them to offer the company's products exclusively. In contrast, PPGAs have a broader focus on selling insurance products and may not manage career agencies. Therefore, this statement about PPGAs managing or commonly being hired for this role is incorrect within the context of how career agencies function in the distribution system. Understanding these dynamics clarifies the different roles within the insurance industry and helps distinguish between the types of agents and their respective responsibilities.