CISR Agency Operations Self Quiz Questions With 100% Correct Answers.

Which one of the following best describes actual authority? - When the agency is expressly given authority in the agency contract Which one of the following statements best describes the standard of care an insurance agency owes an insurance company? - Loyalty, good faith, reasonable care and contractual duties Which one of the following is not one of the four benefits of ethical behavior? - thical behavior encourages governmental regulation Which one of the following best describes a contract? - Oral or written agreements between two parties that creates an obligation to do or not do a particular thing Which one of the following statements best describes agency stakeholders? - The primary stakeholders are any group or individual who is affected by the achievement of a firm's objective Which one of the following sources of revenue for insurance agencies is typically the largest source of income for the insurance agency? - Commission Which one of the following statements best describes how an agency operates? - A larger number of locations may mean that some features of the agency be centralized Which one of the following is not one of the four major classes of exposure to loss? - Loss of use Insurance brokers, who act on behalf of the buyer/client, differ from agents in what way? - Brokers do not have binding authority The best definition of active retention is: - The customer knows before the loss that he/she is financially responsible for all or part of the lossWhich one of the following statements regarding the process of identifying loss exposures is correct? - A document review of the policy is not the best method because it shows the limits, but not the risks Which one of the following best describes the risk management process? - Risk identification, risk analysis, risk control, risk finance, risk administration The primary reason for the regulation of insurance companies is: - To protect insurance consumers Which one of the following statements regarding alternative markets is correct? - Agents do not typically have binding authority in alternative markets Which one of the following statements concerning non-admitted insurance companies is correct? - Non-admitted insurance companies can only be accessed by an excess/surplus lines broker The Managing General Agent (or Agency) can best be described as representing: - One or more insurance companies A process involving the transfer of risk from one insurer call the ceding (or primary) company, to another called the reinsure - Reinsurance