CISR AGENCY OPERATIONS NEWEST 2025 EXAM
WITH CORRECT QUESTIONS AND ACTUAL
ANSWERS FROM A VERIFIED SOURCE (ASSURED
SUCCESS) GRADED A+.
Four benefits of ethical behavior - ANSWERS-a. To be recognized as
knowledgeable insurance professionals within the community
b. To gain public trust and confidence
c. To avoid government regulation
d. To enhance credibility with customers and companies
Misrating & Misclassification - ANSWERS-Risk misrated to write coverage
- Insurer doesn't receive enough premium; Insurer not able to pay losses
Common ethical issues - ANSWERS-Rating a vehicle using wrong class;
incorrect protection class; relying on RC endt; hiding other residents of
household; hiding young drivers; underestimating rating for reduced
premium; signing for insured
Peer standards - ANSWERS-Require duties to be performed in a manner
similar to other in same position
Oral and written agreements - ANSWERS-Law recognizes the duties of
the parties to perform and provides a remedy for non-performance
Statutes - ANSWERS-Every state has statutes: rebating
Actual or Expressed Authority - ANSWERS-Given by the insurance
company (Binding authority, Underwriting approval)
Implied Authority - ANSWERS-Insurance company is stopped from
denying the authority when it's allowed same activity in the past (allowing
bad loss ratio for last 10 years)
, Apparent Authority - ANSWERS-Believed authority. Protects insured from
unauthorized acts of agent. (Ins. Co. pay claim, subrogates against agent)
Standard of Care Owed to Insurers: Loyalty - ANSWERS-Remaining
faithful to company/agency relationship
Standard of Care Owed to Insurers: Good Faith - ANSWERS-Honesty
throughout transaction; Acting in best interest of insurance co
Standard of Care Owed to Insurers: Reasonable Care - ANSWERS-
Submit only business that meets or exceeds UW requirements
Standard of Care Owed to Insurers: Contractual Duties - ANSWERS-
Identified in agency agreement; Staying w/in binding authority; following
required time frame
Standard of Care Owed to Customers: Adequate Coverage - ANSWERS-
Determine appropriate amount of coverage; Explain benefits & advantages;
Identify loss exposure
Standard of Care Owed to Customers: Proper Coverage - ANSWERS-
Understand differences among policies; Use tools to assist in identifying
exposure to loss; Keep current w/ changes & innovations
Standard of Care Owed to Customers: Coverage placed in best interest of
customer - ANSWERS-Best possible terms; Understand differences
among policies; Not placing coverage bases only on highest commission
Standard of Care Owed to Customers: Prompt communication -
ANSWERS-Notify customers about changes, exclusions, transactions,
claims, cancellations, non-renewals
Standard of Care Owed to Customers: Coverage placed with financially
sound company - ANSWERS-Coverage placed with insurer that can pay a
claim; Obtain knowledge if company is experiencing financial troubles and
move insured
WITH CORRECT QUESTIONS AND ACTUAL
ANSWERS FROM A VERIFIED SOURCE (ASSURED
SUCCESS) GRADED A+.
Four benefits of ethical behavior - ANSWERS-a. To be recognized as
knowledgeable insurance professionals within the community
b. To gain public trust and confidence
c. To avoid government regulation
d. To enhance credibility with customers and companies
Misrating & Misclassification - ANSWERS-Risk misrated to write coverage
- Insurer doesn't receive enough premium; Insurer not able to pay losses
Common ethical issues - ANSWERS-Rating a vehicle using wrong class;
incorrect protection class; relying on RC endt; hiding other residents of
household; hiding young drivers; underestimating rating for reduced
premium; signing for insured
Peer standards - ANSWERS-Require duties to be performed in a manner
similar to other in same position
Oral and written agreements - ANSWERS-Law recognizes the duties of
the parties to perform and provides a remedy for non-performance
Statutes - ANSWERS-Every state has statutes: rebating
Actual or Expressed Authority - ANSWERS-Given by the insurance
company (Binding authority, Underwriting approval)
Implied Authority - ANSWERS-Insurance company is stopped from
denying the authority when it's allowed same activity in the past (allowing
bad loss ratio for last 10 years)
, Apparent Authority - ANSWERS-Believed authority. Protects insured from
unauthorized acts of agent. (Ins. Co. pay claim, subrogates against agent)
Standard of Care Owed to Insurers: Loyalty - ANSWERS-Remaining
faithful to company/agency relationship
Standard of Care Owed to Insurers: Good Faith - ANSWERS-Honesty
throughout transaction; Acting in best interest of insurance co
Standard of Care Owed to Insurers: Reasonable Care - ANSWERS-
Submit only business that meets or exceeds UW requirements
Standard of Care Owed to Insurers: Contractual Duties - ANSWERS-
Identified in agency agreement; Staying w/in binding authority; following
required time frame
Standard of Care Owed to Customers: Adequate Coverage - ANSWERS-
Determine appropriate amount of coverage; Explain benefits & advantages;
Identify loss exposure
Standard of Care Owed to Customers: Proper Coverage - ANSWERS-
Understand differences among policies; Use tools to assist in identifying
exposure to loss; Keep current w/ changes & innovations
Standard of Care Owed to Customers: Coverage placed in best interest of
customer - ANSWERS-Best possible terms; Understand differences
among policies; Not placing coverage bases only on highest commission
Standard of Care Owed to Customers: Prompt communication -
ANSWERS-Notify customers about changes, exclusions, transactions,
claims, cancellations, non-renewals
Standard of Care Owed to Customers: Coverage placed with financially
sound company - ANSWERS-Coverage placed with insurer that can pay a
claim; Obtain knowledge if company is experiencing financial troubles and
move insured
