CIC - Agency Management Questions Solved 100%
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Budget Considerations for growing an agency and doing a needs assessment - --the
specific talents and skills employees require
-an awareness of gaps, deficiencies, and surpluses within and across departments
-a determination of how many employees the agency can afford to hire
-the best time for employees to join the agency
An agency uses its value statement to accomplish several goals - -1. Communicate
the agency's core principles to shape its direction and organizational goals
2. Focus on aspirations and behavioral issues that matter most to the agency's leadership
3. Define the standards of conduct and expectations for all agency members
4. Communicate these statements orally, written, and electronic form
Value statement answers the questions - -Who we are?
What we are?
How we do it?
An example of a value statement - -The smith Agency values helping local
businesses succeed
An agency's vision statement should - -1. Communicate a clear picture of what an
agency is trying to achieve
2. Identifies characteristics that:
-reflect the long-range goals of the agency's policyholders
-project the view of what the agency aspires to be
, CIC - Agency Management Questions Solved 100%
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-guide the agency's strategic development
An agency's vision statement answers - -Where do we want to go?
An example of a vision statement - -The vision of the Smith Agency is to be a fully
employee-owned agency that is recognized as the premier commercial lines agency in the
region
An agency's mission statement should - --provide a clear statement of an agency's
purpose and focus
-Identify characteristics that are broadly stated in terms of service, income, and profit
-establish clear growth goals serving its key stakeholders, clients, and employees
An example of a mission statement - -ABC Agency will provide quality personal and
commercial insurance products to the clients located within our trade area to help them
achieve their financial security goals
Several considerations that contribute to establishing an agency's goals - --Target
market niches
-Agency personnel and productivity
-Market territory
-Multiple locations
-Marketing and Sales
Long-Range Planning - -occurs over 3 to 5 years
-establishes purpose, continuity, and direction
-focuses on broad goals that will remain relevant years later
-provides a broad picture of where an agency is headed
Short-Range Planning - -Usually extends over a 12 month period
-more specific and provides details that fit within the framework of the long-term plan
-Involves the production of detailed action plans that organize and prioritize action steps
-Communicate roles and responsibilities
, CIC - Agency Management Questions Solved 100%
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-offers guidance
-provides an agency's daily/weekly/monthly action agendas
S-M-A-R-T - -Specific - Measurable - Attainable - Realistic - Timely
An agency's 5 growth stages - -1. Start-Up
2. Development & Growth
3. Success
4. Expansion
5. Maturity
Start-up companies - -owner or management team handles everything
-the agency is only beginning to establish its client base, production, and service is
unstable
Development & Growth - --an increased number of clients/account
-make efforts to balance revenue and expenses
-owner/management team remains involved in daily operations
Success - --agency is profitable and follows well-executed procedures
-owner/management team delegates some sales and service activities
Expansion - --an agency grows rapidly and targets new marketing territories
Maturity - --agency is fully developed and uses sophisticated systems
-emphasis on collaboration and building professional integrity
-CEO/management team focuses on strategic goals, planning, human resource
development, and support systems
Factors that asses an agency's financial health - -1. Profitability
2. Accounts Receivable - able to collect payments in a timely manner
3. Retention Ratio
4. Average commissions - Producer compensation structure - who owns the book of
business
5. Competencies of personnel - company markets
Correct
Budget Considerations for growing an agency and doing a needs assessment - --the
specific talents and skills employees require
-an awareness of gaps, deficiencies, and surpluses within and across departments
-a determination of how many employees the agency can afford to hire
-the best time for employees to join the agency
An agency uses its value statement to accomplish several goals - -1. Communicate
the agency's core principles to shape its direction and organizational goals
2. Focus on aspirations and behavioral issues that matter most to the agency's leadership
3. Define the standards of conduct and expectations for all agency members
4. Communicate these statements orally, written, and electronic form
Value statement answers the questions - -Who we are?
What we are?
How we do it?
An example of a value statement - -The smith Agency values helping local
businesses succeed
An agency's vision statement should - -1. Communicate a clear picture of what an
agency is trying to achieve
2. Identifies characteristics that:
-reflect the long-range goals of the agency's policyholders
-project the view of what the agency aspires to be
, CIC - Agency Management Questions Solved 100%
Correct
-guide the agency's strategic development
An agency's vision statement answers - -Where do we want to go?
An example of a vision statement - -The vision of the Smith Agency is to be a fully
employee-owned agency that is recognized as the premier commercial lines agency in the
region
An agency's mission statement should - --provide a clear statement of an agency's
purpose and focus
-Identify characteristics that are broadly stated in terms of service, income, and profit
-establish clear growth goals serving its key stakeholders, clients, and employees
An example of a mission statement - -ABC Agency will provide quality personal and
commercial insurance products to the clients located within our trade area to help them
achieve their financial security goals
Several considerations that contribute to establishing an agency's goals - --Target
market niches
-Agency personnel and productivity
-Market territory
-Multiple locations
-Marketing and Sales
Long-Range Planning - -occurs over 3 to 5 years
-establishes purpose, continuity, and direction
-focuses on broad goals that will remain relevant years later
-provides a broad picture of where an agency is headed
Short-Range Planning - -Usually extends over a 12 month period
-more specific and provides details that fit within the framework of the long-term plan
-Involves the production of detailed action plans that organize and prioritize action steps
-Communicate roles and responsibilities
, CIC - Agency Management Questions Solved 100%
Correct
-offers guidance
-provides an agency's daily/weekly/monthly action agendas
S-M-A-R-T - -Specific - Measurable - Attainable - Realistic - Timely
An agency's 5 growth stages - -1. Start-Up
2. Development & Growth
3. Success
4. Expansion
5. Maturity
Start-up companies - -owner or management team handles everything
-the agency is only beginning to establish its client base, production, and service is
unstable
Development & Growth - --an increased number of clients/account
-make efforts to balance revenue and expenses
-owner/management team remains involved in daily operations
Success - --agency is profitable and follows well-executed procedures
-owner/management team delegates some sales and service activities
Expansion - --an agency grows rapidly and targets new marketing territories
Maturity - --agency is fully developed and uses sophisticated systems
-emphasis on collaboration and building professional integrity
-CEO/management team focuses on strategic goals, planning, human resource
development, and support systems
Factors that asses an agency's financial health - -1. Profitability
2. Accounts Receivable - able to collect payments in a timely manner
3. Retention Ratio
4. Average commissions - Producer compensation structure - who owns the book of
business
5. Competencies of personnel - company markets
