CIC AGENCY MANAGEMENT EXAM
QUESTIONS WITH CORRECT ANSWERS
Workflow - Answer-details the specific keystrokes and the steps staff needs to perform
to complete the items identified in the procedure.
The Four Phases of Technology - Answer-1. Manual Transition Phase
2. Process Focused Phase
3. Service Focused Phase
4. Client Focused Phase
Manual Transition Phase - Answer-In this phase, the agency has minimal, if any,
reliance on technology. Often they rely on the automation provided by their carriers. In
this phase, the agency uses automation to replace some of the manually transacted
activities in the agency.
Process Focused Phase - Answer-At this phase, agencies start to position themselves
to allow technology to enhance agency operations which allows staff to multi- task more
efficiently.
Service Focused Phase - Answer-At this phase, immediate electronic access to
information is essential. The agency begins to rely more heavily on automated functions
thereby freeing up the staff to more effectively service the customers.
Client Focused Phase - Answer-This phase can only truly be achieved after the
effective implementation of the first three phases. Appropriate new technology is
embraced as a means to getting back to the business of being an insurance consultant.
The streamlining of each process is much like managing a financial budget. Every
saved processing minute is a minute that can be spent on customer focused needs.
Benefits and Goals of Operational Auditing - Answer-1. To ensure consistency and
adherence to agency Standards, Procedures, and Workflows
Results used as a basis for performance reviews of staff.
2. To assess usage of agency technology to make sure staff is performing well and is
using tools to their full capabilities
Results used to identify "glitches" or inconsistencies to enable the agency to take
corrective action immediately.
3. To identify opportunities to enhance the usage of existing systems, or to expand
functionalities
Results provide a basis for adding functions, increasing capacity, identifying when to
move to the next phase, or replace/update current hardware/software.
4. To measure productivity levels of staff/technology functions
Results identify training needs, redundant procedures and opportunities to set defaults
in the system to reduce key strokes.
, 5. To compare agency productivity levels to peer agency groups
Results indicate whether your agency maintains a competitive edge as it is compared to
standards reported by peer group agency studies. (GPS - Growth & Performance
Standards)
The Five Layers of Client Detail - Answer-1. Client Information
Names, addresses, contacts, phone, e-mail, producer, CSR, etc.
2. Basic Policy Information
Policy type, number, status (new, renewal, cancelled, not renewed, etc.), company,
effective dates, premiums
3. Coverage Information
Type of coverage, limits, deductibles, co-insurance, level of coverage (examples: basic,
broad, special), endorsements, risk specific exclusions, etc.
4. Full Policy Schedules
Statement of Values, Contractor's Equipment Schedules, Vehicle Schedules, Jewelry
Schedules and the like
5. Complete Policy Underwriting Information
Coverages/limit recommendations, reductions & rejections, drivers and their driving
records, construction, appraisals, evaluation worksheets, business income worksheets,
property update information, association requirements (condos, etc.), flood elevation
information, claims information, submission information, NAICS and SIC codes,
classification codes, employee lists, ISO specific rate worksheet, and engineering
reports, etc.
Three Types of Electronic Document Management Workflow Methods - Answer-x Early
Capture
x Desktop Capture
x Late Capture
Primary purpose of job descriptions - Answer-1. Establishes the basic performance
requirements of the position and should set the needed qualifications for individuals
seeking the position.
2. Clarifies acceptable performance.
3. Describes in detail the position's activities.
4. Provides a base measure for employee evaluation.
5. Helps in setting levels of compensation.
6. Can be used as a hiring tool.
Four Components Of The Job Description - Answer-1. Position and objective of the
position
2. position authority
3. position responsibilities
4. performance evaluation standards
Legal guidelines for selection process - Answer-1. Be aware of local, state and federal
laws against discrimination.
QUESTIONS WITH CORRECT ANSWERS
Workflow - Answer-details the specific keystrokes and the steps staff needs to perform
to complete the items identified in the procedure.
The Four Phases of Technology - Answer-1. Manual Transition Phase
2. Process Focused Phase
3. Service Focused Phase
4. Client Focused Phase
Manual Transition Phase - Answer-In this phase, the agency has minimal, if any,
reliance on technology. Often they rely on the automation provided by their carriers. In
this phase, the agency uses automation to replace some of the manually transacted
activities in the agency.
Process Focused Phase - Answer-At this phase, agencies start to position themselves
to allow technology to enhance agency operations which allows staff to multi- task more
efficiently.
Service Focused Phase - Answer-At this phase, immediate electronic access to
information is essential. The agency begins to rely more heavily on automated functions
thereby freeing up the staff to more effectively service the customers.
Client Focused Phase - Answer-This phase can only truly be achieved after the
effective implementation of the first three phases. Appropriate new technology is
embraced as a means to getting back to the business of being an insurance consultant.
The streamlining of each process is much like managing a financial budget. Every
saved processing minute is a minute that can be spent on customer focused needs.
Benefits and Goals of Operational Auditing - Answer-1. To ensure consistency and
adherence to agency Standards, Procedures, and Workflows
Results used as a basis for performance reviews of staff.
2. To assess usage of agency technology to make sure staff is performing well and is
using tools to their full capabilities
Results used to identify "glitches" or inconsistencies to enable the agency to take
corrective action immediately.
3. To identify opportunities to enhance the usage of existing systems, or to expand
functionalities
Results provide a basis for adding functions, increasing capacity, identifying when to
move to the next phase, or replace/update current hardware/software.
4. To measure productivity levels of staff/technology functions
Results identify training needs, redundant procedures and opportunities to set defaults
in the system to reduce key strokes.
, 5. To compare agency productivity levels to peer agency groups
Results indicate whether your agency maintains a competitive edge as it is compared to
standards reported by peer group agency studies. (GPS - Growth & Performance
Standards)
The Five Layers of Client Detail - Answer-1. Client Information
Names, addresses, contacts, phone, e-mail, producer, CSR, etc.
2. Basic Policy Information
Policy type, number, status (new, renewal, cancelled, not renewed, etc.), company,
effective dates, premiums
3. Coverage Information
Type of coverage, limits, deductibles, co-insurance, level of coverage (examples: basic,
broad, special), endorsements, risk specific exclusions, etc.
4. Full Policy Schedules
Statement of Values, Contractor's Equipment Schedules, Vehicle Schedules, Jewelry
Schedules and the like
5. Complete Policy Underwriting Information
Coverages/limit recommendations, reductions & rejections, drivers and their driving
records, construction, appraisals, evaluation worksheets, business income worksheets,
property update information, association requirements (condos, etc.), flood elevation
information, claims information, submission information, NAICS and SIC codes,
classification codes, employee lists, ISO specific rate worksheet, and engineering
reports, etc.
Three Types of Electronic Document Management Workflow Methods - Answer-x Early
Capture
x Desktop Capture
x Late Capture
Primary purpose of job descriptions - Answer-1. Establishes the basic performance
requirements of the position and should set the needed qualifications for individuals
seeking the position.
2. Clarifies acceptable performance.
3. Describes in detail the position's activities.
4. Provides a base measure for employee evaluation.
5. Helps in setting levels of compensation.
6. Can be used as a hiring tool.
Four Components Of The Job Description - Answer-1. Position and objective of the
position
2. position authority
3. position responsibilities
4. performance evaluation standards
Legal guidelines for selection process - Answer-1. Be aware of local, state and federal
laws against discrimination.
