CIC AGENCY MANAGEMENT EXAM 2026
STUDY GUIDE COMPLETE INSURANCE
AGENCY OPERATIONS MANAGEMENT AND
PRACTICE QUESTIONS
◉ Service oriented. Answer: Greater emphasis on satisfying
customer
◉ Large agencies. Answer: More employees you have the less crucial
each employee
More flexibility with vacation and holidays
Greater chance required to follow certain federal and state
regulations
◉ Small agencies. Answer: Employees play more critical roll
Less flexible with time off and vacations
Not subject to certain federal or state regulations
◉ Publicly traded. Answer: Are subject to and must satisfy Wall
Street
Look more at short term goals
,Look at achieving higher rate of return than on employee
satisfaction
◉ Privately held. Answer: Does not have to satisfy Wall Street
Can focus on long and short term goals
More concern with keeping employees happy
◉ Explain the organizational structure available to insurance
agencies?. Answer: 1. Sales vs Service
2. Large vs Small
3. Public vs. Private
◉ Explain the impact of Federal and State regulations on agencies..
Answer: 1. Licensing
2. Role of Federal and State regulators
◉ Licensing. Answer: Is agency going to operate
Single state
Multi state
Resident
Non-resident
Must know licensing requirements and regulations with multi state
licensing
,◉ Role of Federal and State regulators. Answer: Regulators must
Determine reason for regulation
Monitor inter state commerce
Protect consumers
Maintain viable insurance marketplace
◉ Identify the characteristics of the five stages of agency growth and
describe how when and why move from one stage to the other.
Answer: 1. Existence
2. Survival
3. Success
4. Take off
5. Maturity
◉ Existence. Answer: A. Owner and agency are struggling to stay
alive
B. Must be creative to grow
C. Has basic staffing needs
D. Owners do everything
◉ Survival. Answer: A. Agency has ongoing revenue and expense
concerns
, B. To grow agency must have a specific direction
C. Owner still heavily involved aspects but can delegate some sales
and service activities
◉ Success. Answer: Agency is profitable and can choose to
1. Remain stable at comfortable position and be Service oriented
2. Choose Growth and be more sales oriented
◉ Stable agency. Answer: Owners/management can delegate more
day to day sales and service activities
◉ Growth agency. Answer: Owner/management may delegate some
sales and service activities but will increase planning and strategy
focus, may look at mergers and acquisitions and create a
management team
◉ Take off. Answer: The agency is expanding rapidly and targeting
new market territories.
It must carefully coordinate to continue growth and increase staff,
money and people.
Owners/management must delegate and develop ownership team
with one voice.
◉ Maturity. Answer: A developed and decentralized agency
STUDY GUIDE COMPLETE INSURANCE
AGENCY OPERATIONS MANAGEMENT AND
PRACTICE QUESTIONS
◉ Service oriented. Answer: Greater emphasis on satisfying
customer
◉ Large agencies. Answer: More employees you have the less crucial
each employee
More flexibility with vacation and holidays
Greater chance required to follow certain federal and state
regulations
◉ Small agencies. Answer: Employees play more critical roll
Less flexible with time off and vacations
Not subject to certain federal or state regulations
◉ Publicly traded. Answer: Are subject to and must satisfy Wall
Street
Look more at short term goals
,Look at achieving higher rate of return than on employee
satisfaction
◉ Privately held. Answer: Does not have to satisfy Wall Street
Can focus on long and short term goals
More concern with keeping employees happy
◉ Explain the organizational structure available to insurance
agencies?. Answer: 1. Sales vs Service
2. Large vs Small
3. Public vs. Private
◉ Explain the impact of Federal and State regulations on agencies..
Answer: 1. Licensing
2. Role of Federal and State regulators
◉ Licensing. Answer: Is agency going to operate
Single state
Multi state
Resident
Non-resident
Must know licensing requirements and regulations with multi state
licensing
,◉ Role of Federal and State regulators. Answer: Regulators must
Determine reason for regulation
Monitor inter state commerce
Protect consumers
Maintain viable insurance marketplace
◉ Identify the characteristics of the five stages of agency growth and
describe how when and why move from one stage to the other.
Answer: 1. Existence
2. Survival
3. Success
4. Take off
5. Maturity
◉ Existence. Answer: A. Owner and agency are struggling to stay
alive
B. Must be creative to grow
C. Has basic staffing needs
D. Owners do everything
◉ Survival. Answer: A. Agency has ongoing revenue and expense
concerns
, B. To grow agency must have a specific direction
C. Owner still heavily involved aspects but can delegate some sales
and service activities
◉ Success. Answer: Agency is profitable and can choose to
1. Remain stable at comfortable position and be Service oriented
2. Choose Growth and be more sales oriented
◉ Stable agency. Answer: Owners/management can delegate more
day to day sales and service activities
◉ Growth agency. Answer: Owner/management may delegate some
sales and service activities but will increase planning and strategy
focus, may look at mergers and acquisitions and create a
management team
◉ Take off. Answer: The agency is expanding rapidly and targeting
new market territories.
It must carefully coordinate to continue growth and increase staff,
money and people.
Owners/management must delegate and develop ownership team
with one voice.
◉ Maturity. Answer: A developed and decentralized agency
