CISR Agency Operations Questions and Answers Solved Correctly

Agency Characteristics - Number of Employees, Locations, Areas of Specialization, AMS used, Local, Regional, National, International Operations, Use of Service Centers. Small Agency - Require staff to fill multiple roles. Mid-Sized Agencies - Staff may be split Large agencies - More Specialization in single lines. single or multiple locations - The number of locations will affect how an agency communicates and informs. It may also mean that some functions of the agency may be centralized. Local, regional, national or international operation - As with the number of locations, where an agency conducts business affects how an agency communicates and informs. Understanding cultural differences and the local economy becomes a critical factor in the operations of an international agency. Areas of Specialization: - Specialization may require all employees to have a higher level of training and skills in the type or types of business specialized in. The agency management system may require customization to meet the unique needs of the areas specialized in. Use of service centers - Some agencies have transferred the servicing of accounts from their agencies to their insurance carriers by contracting with a service center or customer service unit, leaving the agencies staff available for sales. Other agencies continue to provide customer service to their customers at the agency level. Service Centers will be discussed in detail later. Agency management system used - Since agency management systems differ in their capabilities, the system an agency has will affect its every day operations including how it provides customer service, what type of marketing material it can generate, the reports provided, and the accounting or financial reports available.Sources of Revenue - Commission, Fee Based Services, Profit-Sharing, Investment Income. Commission: - This is typically the largest source of income and is the percentage of the premium that the agency earns from the selling and the renewing of insurance including personal lines, commercial lines, life, health and disability, and employee benefits