CISR Agency Operations Study Guide 2026
Question and Answer | Complete Study Guide |
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• To be recognized as knowledgeable, gain public trust, avoid
government regulation, enhance credibility. CORRECT ANSWER:
What are the benefits of being ethical?
• True. CORRECT ANSWER: Is this example an ethical issue? Rating a
vehicle using the wrong classification
• No. CORRECT ANSWER: Are you allowed to sign for the insured
even if the insured gave permission?
• peer standards, Contracts (oral & written agreements), statutes.
CORRECT ANSWER: Legal duties are based on three criteria:
• Peer standards. CORRECT ANSWER: This requires a person's duty be
performed in a manner similar to others in the same position. They are
not written.
• Contracts (oral and written agreements). CORRECT ANSWER: An
agreement between two or more parties that creates an obligation to do
or not to do a particular thing.
• Statutes. CORRECT ANSWER: Written laws and open to little
interpretation.
• Actual/Expressed Authority. CORRECT ANSWER: Authority that is
expressly given to the agency as found in the contract.
• Implied Authority. CORRECT ANSWER: This authority the insurance
company has allowed the agent to have the appearance of authority
either through custom and usage or estoppel
, • Estoppel. CORRECT ANSWER: Company is stopped from denying
the agent's authority when it has allowed the same activity in the past
without taking any corrective action
• Apparent authority. CORRECT ANSWER: The appearance or the
assumption of authority based on the actions, words, or deeds of the
principal or because of circumstances the principal created.
• Loyalty, good faith, reasonable care, contractual duties. CORRECT
ANSWER: What are the standards of care agents owe to their insurance
companies?
• adequate coverage, proper coverage, coverage placed in best interest,
prompt communication, coverage with financially sound company.
CORRECT ANSWER: What are the standards of care owed to the
customers?
• Commission, fee based, profit sharing, investment income. CORRECT
ANSWER: Insurance agency revenue typically falls into these four
categories:
• Comission. CORRECT ANSWER: This is typically the largest source
of income and is the percentage of the premium that the agency earns
• Fee based. CORRECT ANSWER: Agencies may offer additional
services for which they may be able to legally charge a fee (consulting,
loss control)
• Contingent/Profit sharing. CORRECT ANSWER: This is a bonus that
insurance companies may pay to agencies to reward the agencies' growth
• Investment income. CORRECT ANSWER: Generated from the
investment of the agencies' assests
Question and Answer | Complete Study Guide |
A+ Verified
• To be recognized as knowledgeable, gain public trust, avoid
government regulation, enhance credibility. CORRECT ANSWER:
What are the benefits of being ethical?
• True. CORRECT ANSWER: Is this example an ethical issue? Rating a
vehicle using the wrong classification
• No. CORRECT ANSWER: Are you allowed to sign for the insured
even if the insured gave permission?
• peer standards, Contracts (oral & written agreements), statutes.
CORRECT ANSWER: Legal duties are based on three criteria:
• Peer standards. CORRECT ANSWER: This requires a person's duty be
performed in a manner similar to others in the same position. They are
not written.
• Contracts (oral and written agreements). CORRECT ANSWER: An
agreement between two or more parties that creates an obligation to do
or not to do a particular thing.
• Statutes. CORRECT ANSWER: Written laws and open to little
interpretation.
• Actual/Expressed Authority. CORRECT ANSWER: Authority that is
expressly given to the agency as found in the contract.
• Implied Authority. CORRECT ANSWER: This authority the insurance
company has allowed the agent to have the appearance of authority
either through custom and usage or estoppel
, • Estoppel. CORRECT ANSWER: Company is stopped from denying
the agent's authority when it has allowed the same activity in the past
without taking any corrective action
• Apparent authority. CORRECT ANSWER: The appearance or the
assumption of authority based on the actions, words, or deeds of the
principal or because of circumstances the principal created.
• Loyalty, good faith, reasonable care, contractual duties. CORRECT
ANSWER: What are the standards of care agents owe to their insurance
companies?
• adequate coverage, proper coverage, coverage placed in best interest,
prompt communication, coverage with financially sound company.
CORRECT ANSWER: What are the standards of care owed to the
customers?
• Commission, fee based, profit sharing, investment income. CORRECT
ANSWER: Insurance agency revenue typically falls into these four
categories:
• Comission. CORRECT ANSWER: This is typically the largest source
of income and is the percentage of the premium that the agency earns
• Fee based. CORRECT ANSWER: Agencies may offer additional
services for which they may be able to legally charge a fee (consulting,
loss control)
• Contingent/Profit sharing. CORRECT ANSWER: This is a bonus that
insurance companies may pay to agencies to reward the agencies' growth
• Investment income. CORRECT ANSWER: Generated from the
investment of the agencies' assests
