CISR Agency Operations Exam Test /
Newest Version with Reliable Answers
from Verified Study Resources / Already
Graded A+
Types of Stakeholders
managers and employees
customers
insurers
vendors
industry associations
government
Transfer
Insurance: transfer of financial consequence to an insurance
company
non-insurance: when a customer transfers financial consequences to
another by contract or agreement
Retention
Active: when a customer knows before the loss that they are
responsible for all or part of the loss
Passive: Whoops! when a client finds out after a loss occurs that they
are responsible
What is NOT one of the four benefits of ethical behavior?
Ethical behavior encourages governmental action
Describe the standard of care an insurance agency owes to an
insurance company
,loyalty
good faith
reasonable care
contractual duty
Describe actual authority
when the agency is expressly given the authority in the agency
contract
Describe a contract
Oral or written agreements between two parties that creates an
obligation to do or not do a particular thing
What are the four benefits of ethical behavior?
To be recognized as a knowledgeable insurance professional within
the community
To gain public trust and confidence
To avoid government regulation
To enhance credibility with customers and companies
What is the risk management process?
Risk Identification
Risk analysis
Risk control
Risk finance
Risk administration
Explain the five steps of risk management
Risk identification: identify the customers exposure to loss
Risk analysis: determine frequency or severity of the exposure. How
much could a loss actually cost the customer
Risk control: understand what methods can be implemented to
eliminate or reduce cost associated with exposure
Risk finance: fund losses by user either internal or external dollars
, Risk administration: Implement and monitor the customers risk
management program
Stakeholders
People who have the potential to be affected by any action taken by
an organization. Any group or individual who is affected by the
achievements of a firm's objectives
Risk Control Methods
Avoid: not always practical
Prevent: reduces frequency
Reduce: reduces severity
Segregation: includes separation or duplication
Transfer: can be physical transfer or contractual transfer
What is the difference between a broker and an agent/producer?
Brokers do not have binding authority
How would you best describe an agency stakeholder?
The primary stakeholders are any group or individual who is affected
by the achievement of a firm's objective
Which source of revenue is typically the largest source of income for
an insurance agency?
Commission
What does a large number of locations mean for how an agency
operates?
It may mean some features of the agency are centralized
List the four major classes of exposure to loss
Property
Human Resources
Liability
Net Income
Newest Version with Reliable Answers
from Verified Study Resources / Already
Graded A+
Types of Stakeholders
managers and employees
customers
insurers
vendors
industry associations
government
Transfer
Insurance: transfer of financial consequence to an insurance
company
non-insurance: when a customer transfers financial consequences to
another by contract or agreement
Retention
Active: when a customer knows before the loss that they are
responsible for all or part of the loss
Passive: Whoops! when a client finds out after a loss occurs that they
are responsible
What is NOT one of the four benefits of ethical behavior?
Ethical behavior encourages governmental action
Describe the standard of care an insurance agency owes to an
insurance company
,loyalty
good faith
reasonable care
contractual duty
Describe actual authority
when the agency is expressly given the authority in the agency
contract
Describe a contract
Oral or written agreements between two parties that creates an
obligation to do or not do a particular thing
What are the four benefits of ethical behavior?
To be recognized as a knowledgeable insurance professional within
the community
To gain public trust and confidence
To avoid government regulation
To enhance credibility with customers and companies
What is the risk management process?
Risk Identification
Risk analysis
Risk control
Risk finance
Risk administration
Explain the five steps of risk management
Risk identification: identify the customers exposure to loss
Risk analysis: determine frequency or severity of the exposure. How
much could a loss actually cost the customer
Risk control: understand what methods can be implemented to
eliminate or reduce cost associated with exposure
Risk finance: fund losses by user either internal or external dollars
, Risk administration: Implement and monitor the customers risk
management program
Stakeholders
People who have the potential to be affected by any action taken by
an organization. Any group or individual who is affected by the
achievements of a firm's objectives
Risk Control Methods
Avoid: not always practical
Prevent: reduces frequency
Reduce: reduces severity
Segregation: includes separation or duplication
Transfer: can be physical transfer or contractual transfer
What is the difference between a broker and an agent/producer?
Brokers do not have binding authority
How would you best describe an agency stakeholder?
The primary stakeholders are any group or individual who is affected
by the achievement of a firm's objective
Which source of revenue is typically the largest source of income for
an insurance agency?
Commission
What does a large number of locations mean for how an agency
operates?
It may mean some features of the agency are centralized
List the four major classes of exposure to loss
Property
Human Resources
Liability
Net Income
