CISR - Agency Operations Exam Questions and Answers Already Passed

CISR - Agency Operations Exam Questions and Answers Already Passed Can be defined as a system or set of moral principles or practice - Answers Ethics 7 Factors that can influence an individual's ethics are: - Answers - Friends - Family - Society - Media - Belief Systems - Educational Institution - Legal Restraints 3 Benefits of being ethical - Answers 1. Public Trust / Confidence Gained 2. Government Regulation Avoided 3. Enhanced Credibility Earned Examples of Government Regulation - Answers - Limitations on how credit scoring is used in UW - Trust account fiduciary rules - Unfair trade practices acts 6 steps to Ethical Decisions making - Answers 1. Define the problem 2. Seek out Resources 3. Brainstorm a list of Potential Solutions 4. Evaluate those Alternatives 5. Make your decision & Implement 6. Evaluate the decision _____ is behaving in accordance w/ the legal system - following laws, rules, & policies - Answers Legal Compliance Legal duties are based on 3 criteria: - Answers 1. Peer Standards - Requires a person's duties be performed in a manner similar to others in the same position 2. Oral & Written Agreements (Contracts) 3. Statutes Are written laws open to little interpretation - Answers Statutes - ex of following a writing insurance statue is when the laws protect consumers from unfair trade practices Actual or Expressed Authority - Answers is expressly given to the agency by the insurance company as found in the agency contract. - When used the insurance company is generally responsible to pay for losses -Written authority allows the agent to countersign, issue & deliver policies Implied Authority - Answers The authority of the agent is not specifically expressed (not in writing), but is still consistent with the agent fully exercising expressed authority granted by the company - Contact may not address the agency to use the company logo. but due to implied authority, it is implied the agency has permission to do so Apparent Authority - Answers Authority the agent appears to have based on circumstances surrounding that belief. MISLEADING and cause the customer to believe authority exists when it does not - Agent giving a quote who does not have the actual authority Estoppel - Answers The insurance company is "stopped" from denying the agent's authority when it has allows the same activity in the past without taking any corrective actions - An agency previously exceeded its binding authority serval times, but the insurance company always issued the policies without notifying the agents. Now a loss occurs on a new policy, the insurance comp tries to deny but cannot because the agent used implied authority, for no corrective action has ever been taken in the past. Insurance comp is estopped from denying that agency's authority No Authority - Answers If an agency does NOT represent a company (no agreement in place) there is no authority granted, implied, or apparent Care Owed to the Insurance Company - Answers 1. Loyalty 2. Good Faith 3. Reasonable Care 4. Contractual Duties Care Owed to the Customer - Answers 1. Adequate Coverage - determine the appropriate amount of insurance 2. Proper Coverage - Understand differences in coverage among what is available 3. Coverage Place in the Best Interest of the Customer 4. Prompt Communication 5. Coverage Place w/ a Financially Sound Insurance Comp Values Statement - Answers Defines the heart of the organization; "What do we stand for?" Vision Statement - Answers Specifies what are the current & future goals of the agency Mission Statement - Answers Action-based statement declares what the agency actually does & how they intend to connect with & serve their customers. Reveals what makes the agency unique SMART goal - Answers S - Is your objective SPECIFIC M - Can you MEASURE progress towards goal A - is the goal realistically ATTAINABLE R - How RELEVANT is the goal to your organization T - What is the TIME for achieving this goal? A specific goal answers these questions: - Answers 1. What is the objective that needs to be accomplished? 2. Who is/are the people responsible for it? 3. What steps will be taken to achieve it Goals do not last forever and should have a - Answers Deadline Identifying the agency's ________ & projecting the desired image will be key in attracting & retaining customers - Answers Brand Refers to the behaviors & attitudes of the organizations & its employees. Unspoken rules that communicate what the work atmosphere is like - Answers Agency Culture Depending on the ______________ _________, agency culture can be straightforwar