CISR AGENCY OPERATIONS EVALUATION TEST
UPDATED EXAM QUESTIONS AND ANSWERS GRADED
A+
✔✔Social Media for Insurance Customers - ✔✔Gather information
Share findings
Access to service features
✔✔Standards - ✔✔Must inform employees what is expected in the work they perform to
achieve what needs to be accomplish
✔✔Benefits of writing systems and procedures - ✔✔Uniform performance, training &
reference tool, removes uncertainty, E&O loss prevention
✔✔Four phases of technology: Manual transition - ✔✔Minimal reliance on technology
and automation
✔✔Four phases of technology: process focused - ✔✔beginning to utilize technology
✔✔Four phases of technology: service focused - ✔✔use of technology and automation
is essential and primary source of information and documentation
✔✔Four phases of technology: client focused - ✔✔technology and automation is fully
implemented
✔✔Characteristics of formal training plan - ✔✔1. Written
2. Constructed by employee and manager
3. Relevant
4. Specific
5. Time sensitive
6. Achievable
7. Reviewed
✔✔Internal quality control - ✔✔To ensure business is being handled correctly, E&O
control
✔✔Underwriting guidelines - ✔✔Indicator of the type of business the insurance
company is either interested or not interested in
✔✔Underwriting guidelines exceptions - ✔✔Some situations make sense for UW to
make an exception for a risk outside of guidelines, Infrequent (Book of business based
on exception can lead to unprofitability)
✔✔Guidelines for effective documentation - ✔✔1. Made in agency management system
, 2. More effective to us free form note screen
3. Made immediately after event
4. Consist of the facts
5. Used for E&O claims
✔✔Financial statements as part of UW - ✔✔1. Evaluating financial condition
2. Relationship between financials and loss experience
3. Availability of automated accounting programs
4. Explain how information will be used and will be confidential
✔✔Balance sheet components - ✔✔a. Assets: What is owned
b. Liabilities: What is owed
c. Equity: Assets - Liabilities = Equity
d. Statement of financial condition on a given date
✔✔Profit and Loss - ✔✔a. Summarizes financial results over a period of time
b. Beginning, middle, and end
c. Revenues - Expenses = Profit or Loss
d. Analyze statements for the past 3 to 5 years to identify trends
✔✔Inspections - ✔✔Conducted to identify hazards, verify operations, establish
property values, determine fire and life safety protection, etc.
✔✔Inspection recommendations - ✔✔At the insured's discretion whether to complete;
Mandatory recommendations to be satisfied before coverage can be bound or within
specified time period (failure to comply=cancellation or nonrenew)
✔✔Claims - ✔✔1. Let insurance adjuster accept or deny coverage
2. Not to begin repairs until advised by adjuster
✔✔Service Center - ✔✔Removes service responsibilities, service outlined in contract,
agency notification of changes, log for center for errors or problems
✔✔E&O Claim - ✔✔Negligence must be proved (importance of documentation)
✔✔Four elements for negligence - ✔✔1. Duty owed to another party
2. Breach of duty
3. Actual loss or injury
4. Relationship between duty and loss or injury
✔✔E&O claims: Against agents by Insureds - ✔✔a. Failure to obtain proper coverage
b. Failure to place coverage after agreeing to it
c. Failure to give proper advice
d. Failure to advise insured promptly of rejection or lack of coverage
e. Failure to renew coverage
UPDATED EXAM QUESTIONS AND ANSWERS GRADED
A+
✔✔Social Media for Insurance Customers - ✔✔Gather information
Share findings
Access to service features
✔✔Standards - ✔✔Must inform employees what is expected in the work they perform to
achieve what needs to be accomplish
✔✔Benefits of writing systems and procedures - ✔✔Uniform performance, training &
reference tool, removes uncertainty, E&O loss prevention
✔✔Four phases of technology: Manual transition - ✔✔Minimal reliance on technology
and automation
✔✔Four phases of technology: process focused - ✔✔beginning to utilize technology
✔✔Four phases of technology: service focused - ✔✔use of technology and automation
is essential and primary source of information and documentation
✔✔Four phases of technology: client focused - ✔✔technology and automation is fully
implemented
✔✔Characteristics of formal training plan - ✔✔1. Written
2. Constructed by employee and manager
3. Relevant
4. Specific
5. Time sensitive
6. Achievable
7. Reviewed
✔✔Internal quality control - ✔✔To ensure business is being handled correctly, E&O
control
✔✔Underwriting guidelines - ✔✔Indicator of the type of business the insurance
company is either interested or not interested in
✔✔Underwriting guidelines exceptions - ✔✔Some situations make sense for UW to
make an exception for a risk outside of guidelines, Infrequent (Book of business based
on exception can lead to unprofitability)
✔✔Guidelines for effective documentation - ✔✔1. Made in agency management system
, 2. More effective to us free form note screen
3. Made immediately after event
4. Consist of the facts
5. Used for E&O claims
✔✔Financial statements as part of UW - ✔✔1. Evaluating financial condition
2. Relationship between financials and loss experience
3. Availability of automated accounting programs
4. Explain how information will be used and will be confidential
✔✔Balance sheet components - ✔✔a. Assets: What is owned
b. Liabilities: What is owed
c. Equity: Assets - Liabilities = Equity
d. Statement of financial condition on a given date
✔✔Profit and Loss - ✔✔a. Summarizes financial results over a period of time
b. Beginning, middle, and end
c. Revenues - Expenses = Profit or Loss
d. Analyze statements for the past 3 to 5 years to identify trends
✔✔Inspections - ✔✔Conducted to identify hazards, verify operations, establish
property values, determine fire and life safety protection, etc.
✔✔Inspection recommendations - ✔✔At the insured's discretion whether to complete;
Mandatory recommendations to be satisfied before coverage can be bound or within
specified time period (failure to comply=cancellation or nonrenew)
✔✔Claims - ✔✔1. Let insurance adjuster accept or deny coverage
2. Not to begin repairs until advised by adjuster
✔✔Service Center - ✔✔Removes service responsibilities, service outlined in contract,
agency notification of changes, log for center for errors or problems
✔✔E&O Claim - ✔✔Negligence must be proved (importance of documentation)
✔✔Four elements for negligence - ✔✔1. Duty owed to another party
2. Breach of duty
3. Actual loss or injury
4. Relationship between duty and loss or injury
✔✔E&O claims: Against agents by Insureds - ✔✔a. Failure to obtain proper coverage
b. Failure to place coverage after agreeing to it
c. Failure to give proper advice
d. Failure to advise insured promptly of rejection or lack of coverage
e. Failure to renew coverage
