CIC AGENCY MANAGEMENT ALL LESSONS EXAM REVIEW SOLVED QUESTIONS
COMPLETE ANSWERS GRADED A PLUS
CIC Agency Management ALL Lessons 2026/2027
EXAM Review Questions and Answers Verified
Solutions Latest Update
Question:
Large agencies.
Answer:
More employees you have the less crucial each employee More flexibility with vacation and
holidays Greater chance required to follow certain federal and state regulations
Question:
Small agencies.
Answer:
Employees play more critical roll Less flexible with time off and vacations Not subject to certain
federal or state regulations
Question:
Publicly traded.
Answer:
Are subject to and must satisfy Wall Street Look more at short term goals Look at achieving higher
rate of return than on employee satisfaction
Question:
Privately held.
Answer:
Does not have to satisfy Wall Street Can focus on long and short term goals More concern with
keeping employees happy
,Question:
Explain the organizational structure available to insurance agencies?
Answer:
1. Sales vs Service 2. Large vs Small 3. Public vs. Private
Question:
Explain the impact of Federal and State regulations on agencies.
Answer:
1. Licensing 2. Role of Federal and State regulators
Question:
Licensing.
Answer:
Is agency going to operate Single state Multi state Resident Non-resident Must know licensing
requirements and regulations with multi state licensing
Question:
Role of Federal and State regulators.
Answer:
Regulators must Determine reason for regulation Monitor inter state commerce Protect consumers
Maintain viable insurance marketplace
Question:
Identify the characteristics of the five stages of agency growth and describe how when and why
move from one stage to the other.
Answer:
1. Existence 2. Survival 3. Success 4. Take off 5. Maturity
, Question:
Existence.
Answer:
A. Owner and agency are struggling to stay alive B. Must be creative to grow C. Has basic staffing
needs D. Owners do everything
Question:
Survival.
Answer:
A. Agency has ongoing revenue and expense concerns B. To grow agency must have a specific
direction C. Owner still heavily involved aspects but can delegate some sales and service activities
Question:
Success.
Answer:
Agency is profitable and can choose to 1. Remain stable at comfortable position and be Service
oriented 2. Choose Growth and be more sales oriented
Question:
Stable agency.
Answer:
Owners/management can delegate more day to day sales and service activities
Question:
Growth agency.
Answer:
COMPLETE ANSWERS GRADED A PLUS
CIC Agency Management ALL Lessons 2026/2027
EXAM Review Questions and Answers Verified
Solutions Latest Update
Question:
Large agencies.
Answer:
More employees you have the less crucial each employee More flexibility with vacation and
holidays Greater chance required to follow certain federal and state regulations
Question:
Small agencies.
Answer:
Employees play more critical roll Less flexible with time off and vacations Not subject to certain
federal or state regulations
Question:
Publicly traded.
Answer:
Are subject to and must satisfy Wall Street Look more at short term goals Look at achieving higher
rate of return than on employee satisfaction
Question:
Privately held.
Answer:
Does not have to satisfy Wall Street Can focus on long and short term goals More concern with
keeping employees happy
,Question:
Explain the organizational structure available to insurance agencies?
Answer:
1. Sales vs Service 2. Large vs Small 3. Public vs. Private
Question:
Explain the impact of Federal and State regulations on agencies.
Answer:
1. Licensing 2. Role of Federal and State regulators
Question:
Licensing.
Answer:
Is agency going to operate Single state Multi state Resident Non-resident Must know licensing
requirements and regulations with multi state licensing
Question:
Role of Federal and State regulators.
Answer:
Regulators must Determine reason for regulation Monitor inter state commerce Protect consumers
Maintain viable insurance marketplace
Question:
Identify the characteristics of the five stages of agency growth and describe how when and why
move from one stage to the other.
Answer:
1. Existence 2. Survival 3. Success 4. Take off 5. Maturity
, Question:
Existence.
Answer:
A. Owner and agency are struggling to stay alive B. Must be creative to grow C. Has basic staffing
needs D. Owners do everything
Question:
Survival.
Answer:
A. Agency has ongoing revenue and expense concerns B. To grow agency must have a specific
direction C. Owner still heavily involved aspects but can delegate some sales and service activities
Question:
Success.
Answer:
Agency is profitable and can choose to 1. Remain stable at comfortable position and be Service
oriented 2. Choose Growth and be more sales oriented
Question:
Stable agency.
Answer:
Owners/management can delegate more day to day sales and service activities
Question:
Growth agency.
Answer:
