CISR AGENCY OPERATIONS EXAM ACTUAL EXAM 112 QUESTIOS AND CORECT DETAILED ANSWERS
WITH RATIONALES (VERIFIED ANSWERS)
Can be defined as a system or set of moral principles or practice - correct answer Ethics
7 Factors that can influence an individual's ethics are: - correct answer - Friends
- Family
- Society
- Media
- Belief Systems
- Educational Institution
- Legal Restraints
3 Benefits of being ethical - correct answer 1. Public Trust / Confidence Gained
2. Government Regulation Avoided
3. Enhanced Credibility Earned
Examples of Government Regulation - correct answer - Limitations on how credit scoring is
used in UW
- Trust account fiduciary rules
- Unfair trade practices acts
6 steps to Ethical Decisions making - correct answer 1. Define the problem
2. Seek out Resources
3. Brainstorm a list of Potential Solutions
4. Evaluate those Alternatives
5. Make your decision & Implement
6. Evaluate the decision
_____ is behaving in accordance w/ the legal system - following laws, rules, & policies - correct
answer Legal Compliance
Legal duties are based on 3 criteria: - correct answer 1. Peer Standards
- Requires a person's duties be performed in a manner similar to others in the same position
2. Oral & Written Agreements (Contracts)
3. Statutes
Are written laws open to little interpretation - correct answer Statutes
,CISR AGENCY OPERATIONS EXAM ACTUAL EXAM 112 QUESTIOS AND CORECT DETAILED ANSWERS
WITH RATIONALES (VERIFIED ANSWERS)
- ex of following a writing insurance statue is when the laws protect consumers from unfair
trade practices
Actual or Expressed Authority - correct answer is expressly given to the agency by the insurance
company as found in the agency contract.
- When used the insurance company is generally responsible to pay for losses
-Written authority allows the agent to countersign, issue & deliver policies
Implied Authority - correct answer The authority of the agent is not specifically expressed (not
in writing), but is still consistent with the agent fully exercising expressed authority granted by
the company
- Contact may not address the agency to use the company logo. but due to implied authority, it
is implied the agency has permission to do so
Apparent Authority - correct answer Authority the agent appears to have based on
circumstances surrounding that belief. MISLEADING and cause the customer to believe
authority exists when it does not
- Agent giving a quote who does not have the actual authority
Estoppel - correct answer The insurance company is "stopped" from denying the agent's
authority when it has allows the same activity in the past without taking any corrective actions
- An agency previously exceeded its binding authority serval times, but the insurance company
always issued the policies without notifying the agents. Now a loss occurs on a new policy, the
insurance comp tries to deny but cannot because the agent used implied authority, for no
corrective action has ever been taken in the past. Insurance comp is estopped from denying
that agency's authority
No Authority - correct answer If an agency does NOT represent a company (no agreement in
place) there is no authority granted, implied, or apparent
Care Owed to the Insurance Company - correct answer 1. Loyalty
2. Good Faith
3. Reasonable Care
, CISR AGENCY OPERATIONS EXAM ACTUAL EXAM 112 QUESTIOS AND CORECT DETAILED ANSWERS
WITH RATIONALES (VERIFIED ANSWERS)
4. Contractual Duties
Care Owed to the Customer - correct answer 1. Adequate Coverage
- determine the appropriate amount of insurance
2. Proper Coverage
- Understand differences in coverage among what is available
3. Coverage Place in the Best Interest of the Customer
4. Prompt Communication
5. Coverage Place w/ a Financially Sound Insurance Comp
Values Statement - correct answer Defines the heart of the organization; "What do we stand
for?"
Vision Statement - correct answer Specifies what are the current & future goals of the agency
Mission Statement - correct answer Action-based statement declares what the agency actually
does & how they intend to connect with & serve their customers. Reveals what makes the
agency unique
SMART goal - correct answer S - Is your objective SPECIFIC
M - Can you MEASURE progress towards goal
A - is the goal realistically ATTAINABLE
R - How RELEVANT is the goal to your organization
T - What is the TIME for achieving this goal?
A specific goal answers these questions: - correct answer 1. What is the objective that needs to
be accomplished?
2. Who is/are the people responsible for it?
3. What steps will be taken to achieve it
Goals do not last forever and should have a - correct answer Deadline
Identifying the agency's ________ & projecting the desired image will be key in attracting &
retaining customers - correct answer Brand
WITH RATIONALES (VERIFIED ANSWERS)
Can be defined as a system or set of moral principles or practice - correct answer Ethics
7 Factors that can influence an individual's ethics are: - correct answer - Friends
- Family
- Society
- Media
- Belief Systems
- Educational Institution
- Legal Restraints
3 Benefits of being ethical - correct answer 1. Public Trust / Confidence Gained
2. Government Regulation Avoided
3. Enhanced Credibility Earned
Examples of Government Regulation - correct answer - Limitations on how credit scoring is
used in UW
- Trust account fiduciary rules
- Unfair trade practices acts
6 steps to Ethical Decisions making - correct answer 1. Define the problem
2. Seek out Resources
3. Brainstorm a list of Potential Solutions
4. Evaluate those Alternatives
5. Make your decision & Implement
6. Evaluate the decision
_____ is behaving in accordance w/ the legal system - following laws, rules, & policies - correct
answer Legal Compliance
Legal duties are based on 3 criteria: - correct answer 1. Peer Standards
- Requires a person's duties be performed in a manner similar to others in the same position
2. Oral & Written Agreements (Contracts)
3. Statutes
Are written laws open to little interpretation - correct answer Statutes
,CISR AGENCY OPERATIONS EXAM ACTUAL EXAM 112 QUESTIOS AND CORECT DETAILED ANSWERS
WITH RATIONALES (VERIFIED ANSWERS)
- ex of following a writing insurance statue is when the laws protect consumers from unfair
trade practices
Actual or Expressed Authority - correct answer is expressly given to the agency by the insurance
company as found in the agency contract.
- When used the insurance company is generally responsible to pay for losses
-Written authority allows the agent to countersign, issue & deliver policies
Implied Authority - correct answer The authority of the agent is not specifically expressed (not
in writing), but is still consistent with the agent fully exercising expressed authority granted by
the company
- Contact may not address the agency to use the company logo. but due to implied authority, it
is implied the agency has permission to do so
Apparent Authority - correct answer Authority the agent appears to have based on
circumstances surrounding that belief. MISLEADING and cause the customer to believe
authority exists when it does not
- Agent giving a quote who does not have the actual authority
Estoppel - correct answer The insurance company is "stopped" from denying the agent's
authority when it has allows the same activity in the past without taking any corrective actions
- An agency previously exceeded its binding authority serval times, but the insurance company
always issued the policies without notifying the agents. Now a loss occurs on a new policy, the
insurance comp tries to deny but cannot because the agent used implied authority, for no
corrective action has ever been taken in the past. Insurance comp is estopped from denying
that agency's authority
No Authority - correct answer If an agency does NOT represent a company (no agreement in
place) there is no authority granted, implied, or apparent
Care Owed to the Insurance Company - correct answer 1. Loyalty
2. Good Faith
3. Reasonable Care
, CISR AGENCY OPERATIONS EXAM ACTUAL EXAM 112 QUESTIOS AND CORECT DETAILED ANSWERS
WITH RATIONALES (VERIFIED ANSWERS)
4. Contractual Duties
Care Owed to the Customer - correct answer 1. Adequate Coverage
- determine the appropriate amount of insurance
2. Proper Coverage
- Understand differences in coverage among what is available
3. Coverage Place in the Best Interest of the Customer
4. Prompt Communication
5. Coverage Place w/ a Financially Sound Insurance Comp
Values Statement - correct answer Defines the heart of the organization; "What do we stand
for?"
Vision Statement - correct answer Specifies what are the current & future goals of the agency
Mission Statement - correct answer Action-based statement declares what the agency actually
does & how they intend to connect with & serve their customers. Reveals what makes the
agency unique
SMART goal - correct answer S - Is your objective SPECIFIC
M - Can you MEASURE progress towards goal
A - is the goal realistically ATTAINABLE
R - How RELEVANT is the goal to your organization
T - What is the TIME for achieving this goal?
A specific goal answers these questions: - correct answer 1. What is the objective that needs to
be accomplished?
2. Who is/are the people responsible for it?
3. What steps will be taken to achieve it
Goals do not last forever and should have a - correct answer Deadline
Identifying the agency's ________ & projecting the desired image will be key in attracting &
retaining customers - correct answer Brand
