CISR AGENCY OPERATIONS COMPLETE
PRACTICE EXAM WITH 300 QUESTIONS
WITH VERIFIED ANSWERS | AGENCY
OPERATIONS CISR PRACTICE TEST
(NEWEST CORRECTLY ANSWERED
PRACTICE TEST)
Question 1
What is the most important component of face-to-face communication?
• Answer: Listening, speaking, writing, and body language are the four primary
communication skill areas. The most important component is listening.
Question 2
Which one of the following does not normally apply regarding the use of social
media in an insurance agency?
• Answer: Most agencies provide their staff with a personal email address.
Question 3
Which one of the following methods could reduce the likelihood of an errors
and omissions claim?
• Answer: Using standardized letters or memos .
,Question 4
Which of the following best describes actual authority?
• Answer: When the agency is expressly given authority in the agency contract .
Question 5
The primary reason for the regulation of insurance companies is:
• Answer: To protect insurance consumers .
Question 6
Insurance brokers, who act on behalf of the buyer/client, differ from agents in
what way?
• Answer: Brokers do not have binding authority .
Question 7
Which one of the following statements concerning non-admitted insurance
companies is correct?
• Answer: Non-admitted insurance companies can only be accessed by an
excess/surplus lines broker .
Question 8
A process involving the transfer of risk from one insurer (the ceding company)
to another (the reinsurer) is called:
, • Answer: Reinsurance .
Question 9
Form of reinsurance in which a contract automatically establishes the terms for
reinsuring a class or classes of business:
• Answer: Treaty reinsurance .
Question 10
Form of reinsurance where the reinsurer may accept or reject individual risks:
• Answer: Facultative reinsurance .
Question 11
Which one of the following statements regarding alternative markets is correct?
• Answer: Agents do not typically have binding authority in alternative
markets .
Question 12
What is the primary reason for industry regulation?
• Answer: Consumer protection .
Question 13
, What are the 3 types of insurance company ownership classification?
• Answer: Stock company, Mutual company, Reciprocal exchange company .
Question 14
Which type of insurance company ownership classification is owned by
stockholders and operates with the goal to make money for stockholders?
• Answer: Stock company .
Question 15
Which type of insurance company ownership classification is owned by
policyholders and its goal is to provide insurance coverage at or near cost of
doing business?
• Answer: Mutual company .
Question 16
Which type of insurance company ownership classification involves groups of
individuals/organizations ("subscribers") who join together into an association
for insuring one another?
• Answer: Reciprocal exchange company .
Question 17
What are 3 ways in which insurance companies distribute their products?
PRACTICE EXAM WITH 300 QUESTIONS
WITH VERIFIED ANSWERS | AGENCY
OPERATIONS CISR PRACTICE TEST
(NEWEST CORRECTLY ANSWERED
PRACTICE TEST)
Question 1
What is the most important component of face-to-face communication?
• Answer: Listening, speaking, writing, and body language are the four primary
communication skill areas. The most important component is listening.
Question 2
Which one of the following does not normally apply regarding the use of social
media in an insurance agency?
• Answer: Most agencies provide their staff with a personal email address.
Question 3
Which one of the following methods could reduce the likelihood of an errors
and omissions claim?
• Answer: Using standardized letters or memos .
,Question 4
Which of the following best describes actual authority?
• Answer: When the agency is expressly given authority in the agency contract .
Question 5
The primary reason for the regulation of insurance companies is:
• Answer: To protect insurance consumers .
Question 6
Insurance brokers, who act on behalf of the buyer/client, differ from agents in
what way?
• Answer: Brokers do not have binding authority .
Question 7
Which one of the following statements concerning non-admitted insurance
companies is correct?
• Answer: Non-admitted insurance companies can only be accessed by an
excess/surplus lines broker .
Question 8
A process involving the transfer of risk from one insurer (the ceding company)
to another (the reinsurer) is called:
, • Answer: Reinsurance .
Question 9
Form of reinsurance in which a contract automatically establishes the terms for
reinsuring a class or classes of business:
• Answer: Treaty reinsurance .
Question 10
Form of reinsurance where the reinsurer may accept or reject individual risks:
• Answer: Facultative reinsurance .
Question 11
Which one of the following statements regarding alternative markets is correct?
• Answer: Agents do not typically have binding authority in alternative
markets .
Question 12
What is the primary reason for industry regulation?
• Answer: Consumer protection .
Question 13
, What are the 3 types of insurance company ownership classification?
• Answer: Stock company, Mutual company, Reciprocal exchange company .
Question 14
Which type of insurance company ownership classification is owned by
stockholders and operates with the goal to make money for stockholders?
• Answer: Stock company .
Question 15
Which type of insurance company ownership classification is owned by
policyholders and its goal is to provide insurance coverage at or near cost of
doing business?
• Answer: Mutual company .
Question 16
Which type of insurance company ownership classification involves groups of
individuals/organizations ("subscribers") who join together into an association
for insuring one another?
• Answer: Reciprocal exchange company .
Question 17
What are 3 ways in which insurance companies distribute their products?
