Caib 4 Practice Final Exam 2023

1 ) Owners of your brokerage wish to join an operating affiliation. They want a written report of their options including your options. - Answer- Salient Points: - Loosely Knit - General Purpose Groups. - Clusters. - Common Identity Groups. - Services and Support. - Exclusivity. - Fees. - Contractual Agreement. - Financial Strength. 2 ) Your brokerage is looking for a new insurer to represent. As marketing manage, what characteristics would you evaluate - Answer- Salient points: - Financial strength. - Marketing Philosophy/ Strategy. - Claim Service(History/reputation/ask). - Underwriting Procedures. - Location. - Policyholder Services. 3 ) Your CEO is developing a Strategic Plan. She has asked for your guidance. She would like to know what characteristics the plan should possess. - Answer- Salient Points: - Flexible. - Serverable. - Simple. - practical. 4 ) While developing marketing strategies, your owner wants to know what options are available. What Target marketing Strategies would you suggest.? - Answer- Salient Points: - Undifferentiated. - Differentiated. - Niche. - Custom Marketing. 5 ) While analyzing new insurer documents, the topic of direct Bill is discussed. What is direct bill and what are the disadvantages of direct bill business. - Answer- Salient Points: - Definition of a direct bill. - Loss of investment income. - Loss of control of documents preparation. - Loss of client contact. - Termination. - Hold harmless. - Privacy Act. - EDI Provisions. - Other Provisions. 6 ) You want to attract new Insurers to contract with your brokerage. What could your brokerage do to prepare? - Answer- Salient Points: - Premises. - Financial information. - Type and mix of business. - Other insurers represented. - Loss experience. - Human Resources. - Business Plan. - E & O Claims Record. 7 ) You have been asked by your Sales Manager to segment your client base using demographics. In what ways would this assist your marketing efforts. - Answer- Salient Points: - Age. - Gender. - Life Style. - Education. - Occupation. - Ethnic Background. 8 ) The owner of your brokerage has asked for your written opinion regarding the number of insurers to represent. - Answer- Salient Points: - Too many Inefficient. - Too few is dangerous. Advantage to having correct amount: - Proper Premium volume to withstand catastrophic losses. - Profit sharing potential. - Strong relations with insurer. 9 ) The owner of your brokerage heard of something called a strategic plan on TV last night. She wants you to explain this to her in a written report. - Answer- Salient Points: - Scanning the external environment. _ Analyzing the internal environment and assessing Current position. -Matching strengths and weakness to the opportunities and threats. - Defining a corporate Focus. - Developing Strategies. - Developing objectives. - Settings Goals. 10 ) The owner has given everyone a gift certificate to Pizza hut as year end bonus. No one seems too impressed. The owner has asked you explain the motivating function. - Answer- Salient Points: - Motivation comes from within. - Usual needs are used to assist in motivation function. - Managers needs to recognize what motivates individual employees. 11 ) While selling your brokerage, you notice that prospective purchasers only want to view the financial statements to determine value. You want to show them that your brokerage is more than just numbers. What non-financial factors could you discuss with them and how would these reflect your brokerage's value. - Answer- Salient points: - Geographic representations. - Companies represented. - Type of billings. - Relationships with clients. - Business use. - Quality of employees. - New Business potential. - Loss Ratio. - Error and commission losses. 12 ) You have been asked to send two of your CSR's on a CAIB Course. The brokerage owner wants to know what the ''payback'' will be for the brokerage. - Answer- Salient Points: - Service. - Profit Chain. 13 ) You are trying to convince your boss to upgrade your office's technology. Aside from operational reasons, what are some arguments you could use. - Answer- Salient Points: - Enhance profitability. - Build client relationships. - Improve effectiveness. 14 ) The new computers have arrived. How wold you manage the implementation of the new system. - Answer- Salient Points: - Management involvement. - Staff frustrations common. - Contingency plan. - Maximization.