CAIB 4 Exam Questions and Answers
100% Pass
4 Forms of operating affiliations - ✔✔loosely knit, general purpose groups, clusters,
common identity groups
What are the considerations when evaluating operating affiliations - ✔✔services and
support, exclusivity, fees, contractual agreement, financial strength
What is the law of agency - ✔✔when one entity acts on behalf of another
6 activities with human resources management function - ✔✔planning, selecting,
orienting, training, developing & rewarding, managing performance
the 3 steps in the selection process of new employees - ✔✔recruitment, screening and
interviewing, hiring
4 advantages of hiring within - ✔✔cost effective, shorter vacancy, takes guesswork out
of hiring, reduces turnover
5 components of screening process - ✔✔application, resume, interview, testing,
reference checks
most critical component of the orientation process - ✔✔the explanation of performance
expectations
4 kinds of training programs recommended for brokerages - ✔✔quality service training,
sales training, product and service knowledge, leadership training
COPYRIGHT © 2025 BY SOPHIA BENNETT, ALL RIGHTS RESERVED 1
,4 elements of the training program - ✔✔who, what, why, how
how does a career path relate to an employee's development within brokerage - ✔✔it
shows the employee how they may progress from one position to another and what
kinds of skills and education will be required in order to progress
6 components of leadership - ✔✔delegating, motivating, communication, managing
conflict, managing change, coaching
key factor of effective delegation - ✔✔communication is the key factor of delegation
2 reasons why delegation breaks down - ✔✔when the balance between responsibility
and authority is not maintained and when communication between the parties is not
clear
non verbal communication - ✔✔need to consider not only what you say but how you
say it
body language - ✔✔others may interpret words differently if body language, gestures,
mannerisms are not supporting the words
active listening - ✔✔ability to read between the lines, asks questions to seek clarification
how managers can promote open communication - ✔✔demonstrate a desire to
communicate, display a tendency to take action, maintain flexibility, employ active
listening skills
4 strategies a manager can use to resolve employee conflict - ✔✔communication skills,
mutual respect, interactive problem solving, win-win solutions
4 causes of employee resistance to change - ✔✔tradition, past failures, lack of times as
too many priorities, unpredictability of future
COPYRIGHT © 2025 BY SOPHIA BENNETT, ALL RIGHTS RESERVED 2
, why do some leaders fail to coach their employees - ✔✔they don't have time, they don'
know how, too many employees reporting to them, employees are not motivated to
perform better
5 components of coaching process - ✔✔assessing performance, setting goals, self-
evaluation, rewarding, monitoring
4 examples of when coaching is best used - ✔✔when employee asks for advice, to
prepare employee to take on a new activity, to provide support or guidance to an
employee experiencing difficulty, to help an employee apply theoretical knowledge or
skills
what are the advantages of having a brokerage agreement - ✔✔right to bind certain
coverages, eligibility to participate in profit sharing
what are the billing procedures - ✔✔agency and direct billing
topics in a brokerage agreement - ✔✔ownership of expirations, authority, billing
procedures, commissions, termination, privacy act
considerations when negotiating profit sharing agreement - ✔✔how much business to
write, lines of business included and excluded, how income is computed, how profit is
to be calculated, when profit sharing will be paid to brokerage
keys factors when selecting an insurance company - ✔✔marketing philosophy, claims
services, policyholder services, financial stability, U/W procedures
why is it important to align the marketing philosophy and practices of an insurance
company with those of the brokerage - ✔✔the brokerage must have relationships with
insurance companies that can supply the products and services to help the brokerage
fulfill it mission
COPYRIGHT © 2025 BY SOPHIA BENNETT, ALL RIGHTS RESERVED 3
100% Pass
4 Forms of operating affiliations - ✔✔loosely knit, general purpose groups, clusters,
common identity groups
What are the considerations when evaluating operating affiliations - ✔✔services and
support, exclusivity, fees, contractual agreement, financial strength
What is the law of agency - ✔✔when one entity acts on behalf of another
6 activities with human resources management function - ✔✔planning, selecting,
orienting, training, developing & rewarding, managing performance
the 3 steps in the selection process of new employees - ✔✔recruitment, screening and
interviewing, hiring
4 advantages of hiring within - ✔✔cost effective, shorter vacancy, takes guesswork out
of hiring, reduces turnover
5 components of screening process - ✔✔application, resume, interview, testing,
reference checks
most critical component of the orientation process - ✔✔the explanation of performance
expectations
4 kinds of training programs recommended for brokerages - ✔✔quality service training,
sales training, product and service knowledge, leadership training
COPYRIGHT © 2025 BY SOPHIA BENNETT, ALL RIGHTS RESERVED 1
,4 elements of the training program - ✔✔who, what, why, how
how does a career path relate to an employee's development within brokerage - ✔✔it
shows the employee how they may progress from one position to another and what
kinds of skills and education will be required in order to progress
6 components of leadership - ✔✔delegating, motivating, communication, managing
conflict, managing change, coaching
key factor of effective delegation - ✔✔communication is the key factor of delegation
2 reasons why delegation breaks down - ✔✔when the balance between responsibility
and authority is not maintained and when communication between the parties is not
clear
non verbal communication - ✔✔need to consider not only what you say but how you
say it
body language - ✔✔others may interpret words differently if body language, gestures,
mannerisms are not supporting the words
active listening - ✔✔ability to read between the lines, asks questions to seek clarification
how managers can promote open communication - ✔✔demonstrate a desire to
communicate, display a tendency to take action, maintain flexibility, employ active
listening skills
4 strategies a manager can use to resolve employee conflict - ✔✔communication skills,
mutual respect, interactive problem solving, win-win solutions
4 causes of employee resistance to change - ✔✔tradition, past failures, lack of times as
too many priorities, unpredictability of future
COPYRIGHT © 2025 BY SOPHIA BENNETT, ALL RIGHTS RESERVED 2
, why do some leaders fail to coach their employees - ✔✔they don't have time, they don'
know how, too many employees reporting to them, employees are not motivated to
perform better
5 components of coaching process - ✔✔assessing performance, setting goals, self-
evaluation, rewarding, monitoring
4 examples of when coaching is best used - ✔✔when employee asks for advice, to
prepare employee to take on a new activity, to provide support or guidance to an
employee experiencing difficulty, to help an employee apply theoretical knowledge or
skills
what are the advantages of having a brokerage agreement - ✔✔right to bind certain
coverages, eligibility to participate in profit sharing
what are the billing procedures - ✔✔agency and direct billing
topics in a brokerage agreement - ✔✔ownership of expirations, authority, billing
procedures, commissions, termination, privacy act
considerations when negotiating profit sharing agreement - ✔✔how much business to
write, lines of business included and excluded, how income is computed, how profit is
to be calculated, when profit sharing will be paid to brokerage
keys factors when selecting an insurance company - ✔✔marketing philosophy, claims
services, policyholder services, financial stability, U/W procedures
why is it important to align the marketing philosophy and practices of an insurance
company with those of the brokerage - ✔✔the brokerage must have relationships with
insurance companies that can supply the products and services to help the brokerage
fulfill it mission
COPYRIGHT © 2025 BY SOPHIA BENNETT, ALL RIGHTS RESERVED 3
