TOTAL CSR QUESTIONS WITH
CORRECT ANSWERS
The CSR Support Cycle involves eight major steps: ✔✔Obtain Required Submission
Information
Complete ACORD Forms
Send the Submission
Receive and Review Quotes
Create and Present the Proposal
Bind Coverage with the Insurance Company
Check the Policy
Support the Insured
Class code ✔✔5 digit # used to classify a business' operation to help identify different
workplace exposures
premium basis ✔✔basis to which rates are applied to determine premium
exposure ✔✔insured's level of risk to a loss or claim represented as actual/estimated
figures
3 steps required to determine the correct premium basis ✔✔1. understand the insured's
business ops
2. discover the class code assigned to the insured's business operations
3. ascertain the class codes' appropriate premium basis
Understand business operations ✔✔Collect insured's supplemental applications, having
direct discussions with the insured and/or receiving the insured's past policy details
Discover the Class Code ✔✔determined by Insurance Services Office, Inc. (ISO). The
ISO has provided a listing of class codes with descriptions for each to help discover the
correct class code(s) for an insured.
Ascertain the Premium Basis ✔✔Dependent on the distinctive first digit in the code
number
,10000-19999= Gross sales
40000-49000= Various Figures
50000-59999= Gross sales
60000-6999= Various Figures
90000-9999= Payroll or gross sales
Collecting Estimated Annual Exposure Figures ✔✔Once the premium basis is
determined, the estimated annual exposure figures can now be collected from an
insured.
Note: If an insured's premium basis is payroll, the employees' straight time wages are
used to calculate total payroll (which is just a component of remuneration).
Completed Supplemental Applications ✔✔When required by an insurance carrier, either
the producer or the customer service representative will send a supplemental
application via email, mail, or fax to an insured for them to complete
Currently Valued Loss Run Reports ✔✔Insured's specific policy period
typically use the last 5 policy periods in their policy premium calculations
Currently valued loss run report ✔✔Updated 90 days of when the insured's proposed
policy period would begin
Indemnity ✔✔coverage amount provided to the claimant for damages incurred due to
the occurrence
claim number ✔✔unique identifier that attaches an insurance claim/loss to a specific
claimant
paid ✔✔losses paid to claimant during the reported period
reserve ✔✔estimated amount set aside to cover an open claim's potential future
expenses
incurred ✔✔total amount of paid and reserve losses for a claim or policy period
paid (included) ✔✔losses paid to claimant during the reported period including an
deductibles paid to the insurance carrier for said claim
incurred (included) ✔✔total amount of paid and reserve losses for a claim or policy
period including any deductibles paid to the insurance carrier for said claim
,Loss Run Reports ✔✔Must be requested from the insurance carriers who wrote each of
the insured's policies over the last 5 policy periods
In order to release the info, insurance carriers need to receive an ✔✔agent of service
authorization letter from the insured
Agent of service authorization letter ✔✔provides permission for the insurance carrier to
release the insured's loss run data, most often, to the insured's current agent of record
(you)
3 completed ACORD forms must be provided to an insurance carrier ✔✔Acord 125,
126, 829
Limits 1 ✔✔Most often want it to be per policy unless in construction or manufacturing
with multiples projects throughout the year then best to select PROJECT
Limits 2 ✔✔Higher the requested policy limits, higher the premium quote
deductibles ✔✔higher requested deductibles will make it more likely the application will
be accepted and will decrease the premium quoted
Premium Basis ✔✔Correct premium basis abbreviation for the appropriate location #,
hazard #, and class code
2 kinds of carriers ✔✔Admitted and non-admitted (surplus lines)
Admitted carriers ✔✔insurance carriers that have been approved by the state's
insurance department for following their standard rules and regulations
Benefits when insureds secure a policy with an admitted carrier ✔✔-insured doesn't
have to pay as many fees and taxes for the policy
-state will step in and cover part or all of the insureds claims if the carrier fails
-if the insured doesn't agree with how a claim was handled, they can appeal the
decision to the state insurance department
Billing options when paying a premium ✔✔Full down payment
10% deposit with a monthly installment plan
10% down payment with a monthly installment plan
15% down payment with a monthly installment plan
, Deposit ✔✔upfront payment by an insured to a carrier that does not help pay for a
policy's premium
Carriers offer this billing option typically for workers' compensation as the insured could
owe additional funds once the insured's end-of-year audit is completed
premium financing can be offered to an insured by these parties ✔✔-policys insurance
carrier
surplus lines broker
insureds insurance agency
a bank
premium finance company
premium financing is beneficial as it ✔✔Optimizes their cash flow
bullet
Enables them to purchase the more comprehensive policy of a non-admitted carrier at
an affordable price
bullet
Could be a "one stop" payment option for multiple policies
bullet
Creates a possible tax advantage
A premium finance agreement could be canceled by nonpayment or cancellation of the
insurance policy. If the agreement is canceled due to the insured canceling their policy,
you must make sure notifications are sent in the manner that is specified in the
insurance policy. ✔✔did u know
In most cases when placing general liability insurance, three completed ACORD forms
must be provided to an insurance carrier: ✔✔ACORD 125, ACORD 126 and ACORD
829.
accord 125 ✔✔Considered to be the foundation of all commercial applications, this
document provides detailed information regarding the insured not duplicated on any
other ACORD commercial application forms.
accord 829 ✔✔This form can be attached with any other ACORD form. It provides
insurance carriers with any additional policy information needed by the insured and/or
carriers. It is used frequently as it is the document that is used to indicate that
endorsements are to be quoted and issued with the policy.
Submission ✔✔Specific collection of documents provided to an insurance company
allowing them to write an insurance policy. It is what determines the insured's policy
CORRECT ANSWERS
The CSR Support Cycle involves eight major steps: ✔✔Obtain Required Submission
Information
Complete ACORD Forms
Send the Submission
Receive and Review Quotes
Create and Present the Proposal
Bind Coverage with the Insurance Company
Check the Policy
Support the Insured
Class code ✔✔5 digit # used to classify a business' operation to help identify different
workplace exposures
premium basis ✔✔basis to which rates are applied to determine premium
exposure ✔✔insured's level of risk to a loss or claim represented as actual/estimated
figures
3 steps required to determine the correct premium basis ✔✔1. understand the insured's
business ops
2. discover the class code assigned to the insured's business operations
3. ascertain the class codes' appropriate premium basis
Understand business operations ✔✔Collect insured's supplemental applications, having
direct discussions with the insured and/or receiving the insured's past policy details
Discover the Class Code ✔✔determined by Insurance Services Office, Inc. (ISO). The
ISO has provided a listing of class codes with descriptions for each to help discover the
correct class code(s) for an insured.
Ascertain the Premium Basis ✔✔Dependent on the distinctive first digit in the code
number
,10000-19999= Gross sales
40000-49000= Various Figures
50000-59999= Gross sales
60000-6999= Various Figures
90000-9999= Payroll or gross sales
Collecting Estimated Annual Exposure Figures ✔✔Once the premium basis is
determined, the estimated annual exposure figures can now be collected from an
insured.
Note: If an insured's premium basis is payroll, the employees' straight time wages are
used to calculate total payroll (which is just a component of remuneration).
Completed Supplemental Applications ✔✔When required by an insurance carrier, either
the producer or the customer service representative will send a supplemental
application via email, mail, or fax to an insured for them to complete
Currently Valued Loss Run Reports ✔✔Insured's specific policy period
typically use the last 5 policy periods in their policy premium calculations
Currently valued loss run report ✔✔Updated 90 days of when the insured's proposed
policy period would begin
Indemnity ✔✔coverage amount provided to the claimant for damages incurred due to
the occurrence
claim number ✔✔unique identifier that attaches an insurance claim/loss to a specific
claimant
paid ✔✔losses paid to claimant during the reported period
reserve ✔✔estimated amount set aside to cover an open claim's potential future
expenses
incurred ✔✔total amount of paid and reserve losses for a claim or policy period
paid (included) ✔✔losses paid to claimant during the reported period including an
deductibles paid to the insurance carrier for said claim
incurred (included) ✔✔total amount of paid and reserve losses for a claim or policy
period including any deductibles paid to the insurance carrier for said claim
,Loss Run Reports ✔✔Must be requested from the insurance carriers who wrote each of
the insured's policies over the last 5 policy periods
In order to release the info, insurance carriers need to receive an ✔✔agent of service
authorization letter from the insured
Agent of service authorization letter ✔✔provides permission for the insurance carrier to
release the insured's loss run data, most often, to the insured's current agent of record
(you)
3 completed ACORD forms must be provided to an insurance carrier ✔✔Acord 125,
126, 829
Limits 1 ✔✔Most often want it to be per policy unless in construction or manufacturing
with multiples projects throughout the year then best to select PROJECT
Limits 2 ✔✔Higher the requested policy limits, higher the premium quote
deductibles ✔✔higher requested deductibles will make it more likely the application will
be accepted and will decrease the premium quoted
Premium Basis ✔✔Correct premium basis abbreviation for the appropriate location #,
hazard #, and class code
2 kinds of carriers ✔✔Admitted and non-admitted (surplus lines)
Admitted carriers ✔✔insurance carriers that have been approved by the state's
insurance department for following their standard rules and regulations
Benefits when insureds secure a policy with an admitted carrier ✔✔-insured doesn't
have to pay as many fees and taxes for the policy
-state will step in and cover part or all of the insureds claims if the carrier fails
-if the insured doesn't agree with how a claim was handled, they can appeal the
decision to the state insurance department
Billing options when paying a premium ✔✔Full down payment
10% deposit with a monthly installment plan
10% down payment with a monthly installment plan
15% down payment with a monthly installment plan
, Deposit ✔✔upfront payment by an insured to a carrier that does not help pay for a
policy's premium
Carriers offer this billing option typically for workers' compensation as the insured could
owe additional funds once the insured's end-of-year audit is completed
premium financing can be offered to an insured by these parties ✔✔-policys insurance
carrier
surplus lines broker
insureds insurance agency
a bank
premium finance company
premium financing is beneficial as it ✔✔Optimizes their cash flow
bullet
Enables them to purchase the more comprehensive policy of a non-admitted carrier at
an affordable price
bullet
Could be a "one stop" payment option for multiple policies
bullet
Creates a possible tax advantage
A premium finance agreement could be canceled by nonpayment or cancellation of the
insurance policy. If the agreement is canceled due to the insured canceling their policy,
you must make sure notifications are sent in the manner that is specified in the
insurance policy. ✔✔did u know
In most cases when placing general liability insurance, three completed ACORD forms
must be provided to an insurance carrier: ✔✔ACORD 125, ACORD 126 and ACORD
829.
accord 125 ✔✔Considered to be the foundation of all commercial applications, this
document provides detailed information regarding the insured not duplicated on any
other ACORD commercial application forms.
accord 829 ✔✔This form can be attached with any other ACORD form. It provides
insurance carriers with any additional policy information needed by the insured and/or
carriers. It is used frequently as it is the document that is used to indicate that
endorsements are to be quoted and issued with the policy.
Submission ✔✔Specific collection of documents provided to an insurance company
allowing them to write an insurance policy. It is what determines the insured's policy
