Certified Insurance Service Representative (CISR) Agency
Operations Exam Questions and Answers with Complete
Solutions
One engaged in an occupation requiring a high level of training and proficiency -
ANSWER>>Professional
What are the benefits of being ethical? - ANSWER>>To be recognized as
knowledgeable, gain public trust, avoid government regulation, enhance
credibility
Is this example an ethical issue? Rating a vehicle using the wrong classification -
ANSWER>>True
Are you allowed to sign for the insured even if the insured gave permission? -
ANSWER>>No
Legal duties are based on three criteria: - ANSWER>>peer standards, Contracts
(oral & written agreements), statutes
This requires a person's duty be performed in a manner similar to others in the
same position. They are not written. - ANSWER>>Peer standards
An agreement between two or more parties that creates an obligation to do or
not to do a particular thing. - ANSWER>>Contracts (oral and written agreements)
Written laws and open to little interpretation. - ANSWER>>Statutes
Authority that is expressly given to the agency as found in the contract. -
ANSWER>>Actual/Expressed Authority
This authority the insurance company has allowed the agent to have the
appearance of authority either through custom and usage or estoppel -
ANSWER>>Implied Authority
, Company is stopped from denying the agent's authority when it has allowed the
same activity in the past without taking any corrective action -
ANSWER>>Estoppel
The appearance or the assumption of authority based on the actions, words, or
deeds of the principal or because of circumstances the principal created. -
ANSWER>>Apparent authority
What are the standards of care agents owe to their insurance companies? -
ANSWER>>Loyalty, good faith, reasonable care, contractual duties
What are the standards of care owed to the customers? - ANSWER>>adequate
coverage, proper coverage, coverage placed in best interest, prompt
communication, coverage with financially sound company
Insurance agency revenue typically falls into these four categories: -
ANSWER>>Commission, fee based, profit sharing, investment income
This is typically the largest source of income and is the percentage of the
premium that the agency earns - ANSWER>>Comission
Agencies may offer additional services for which they may be able to legally
charge a fee (consulting, loss control) - ANSWER>>Fee based
This is a bonus that insurance companies may pay to agencies to reward the
agencies' growth - ANSWER>>Contingent/Profit sharing
Generated from the investment of the agencies' assests - ANSWER>>Investment
income
Agencies divide their personnel into two major categories: - ANSWER>>Sales &
service
Comprised of agents or brokers with the responsibility to identify prospects, make
sales calls, determine prospects needs, present solutions and secure buying
decision - ANSWER>>Sales staff
Operations Exam Questions and Answers with Complete
Solutions
One engaged in an occupation requiring a high level of training and proficiency -
ANSWER>>Professional
What are the benefits of being ethical? - ANSWER>>To be recognized as
knowledgeable, gain public trust, avoid government regulation, enhance
credibility
Is this example an ethical issue? Rating a vehicle using the wrong classification -
ANSWER>>True
Are you allowed to sign for the insured even if the insured gave permission? -
ANSWER>>No
Legal duties are based on three criteria: - ANSWER>>peer standards, Contracts
(oral & written agreements), statutes
This requires a person's duty be performed in a manner similar to others in the
same position. They are not written. - ANSWER>>Peer standards
An agreement between two or more parties that creates an obligation to do or
not to do a particular thing. - ANSWER>>Contracts (oral and written agreements)
Written laws and open to little interpretation. - ANSWER>>Statutes
Authority that is expressly given to the agency as found in the contract. -
ANSWER>>Actual/Expressed Authority
This authority the insurance company has allowed the agent to have the
appearance of authority either through custom and usage or estoppel -
ANSWER>>Implied Authority
, Company is stopped from denying the agent's authority when it has allowed the
same activity in the past without taking any corrective action -
ANSWER>>Estoppel
The appearance or the assumption of authority based on the actions, words, or
deeds of the principal or because of circumstances the principal created. -
ANSWER>>Apparent authority
What are the standards of care agents owe to their insurance companies? -
ANSWER>>Loyalty, good faith, reasonable care, contractual duties
What are the standards of care owed to the customers? - ANSWER>>adequate
coverage, proper coverage, coverage placed in best interest, prompt
communication, coverage with financially sound company
Insurance agency revenue typically falls into these four categories: -
ANSWER>>Commission, fee based, profit sharing, investment income
This is typically the largest source of income and is the percentage of the
premium that the agency earns - ANSWER>>Comission
Agencies may offer additional services for which they may be able to legally
charge a fee (consulting, loss control) - ANSWER>>Fee based
This is a bonus that insurance companies may pay to agencies to reward the
agencies' growth - ANSWER>>Contingent/Profit sharing
Generated from the investment of the agencies' assests - ANSWER>>Investment
income
Agencies divide their personnel into two major categories: - ANSWER>>Sales &
service
Comprised of agents or brokers with the responsibility to identify prospects, make
sales calls, determine prospects needs, present solutions and secure buying
decision - ANSWER>>Sales staff
