CAIB 4 Terms Questions And Answers

CAIB 4 Terms Questions And Answers
Defineeaepartnership,ewhateareetheetwoetypeseofepartnerships?e-eCORRECTeeANSWER-
Aepartnershipeiseaevoluntaryeassociationeofetwoeoremoreepersonsewhoeareeco-
ownerseofeaebusiness.
Generaleandelimited.

DefineeDemographicseandeliste6esubtypes,eexplaineeach:e-eCORRECTeeANSWER-
Groupingeclientsetogetherebasedeonepersonaleinformationesucheaseage,egender,elife-
cycle,eeducation,eoccupation,eethnicity.

DefineeeacheaspecteofeSMARTegoalse-eCORRECTeeANSWER-Specifice-
eClearlyestateewhateisetoebeeaccomplished

Measurablee-eMustebeecapableeofebeingemeasured
Actionablee-eMustebeeclearewhatespecificallyeiseexpected
Realistice-eMustebelieveethateitecanebeeachieved
Timelye-eCompletionedateeoretimeeframe

Discussebankeaccountseandehandlingeofepremiumse-eCORRECTeeANSWER-
Provincialelegislationegovernsehowepremiumefundseareehandled.eBrokeragesemustehaveetw
oebankeaccounts.eOneeiseaneoperatingeaccount,eandeoneeiseaetrusteaccount.eWithdrawalseca
neonlyebeebrokeragesecommissions,enetepremiums,eanderefunds.

DiscusseMarketingeaseaeStrategye-eCORRECTeeANSWER-
Strategiceaboutewhateyou'reemarketingebye-
eMarketesegmentation,eDifferentiation,eMarketePositioning




Discussemarketingeaseaetoolkit.eWhateareetheefourePs?e-eCORRECTeeANSWER-
Price,eplace,eproduct,eandepromotioneIfeyouehaeetheefourePseineorder,etheeclientsewillecome.

DiscussemarketingeaseCulture.e-eCORRECTeeANSWER-
Everythingewithinetheecompanyeisefocussedeonebuildingeclientesatisfaction.eTheyewantetheire
clientsetoebeeretained,eandealsoetoerecommendetheecompanyetoeothers.

Discusseratificatione-eCORRECTeeANSWER-
Ratificationetakeseplaceewheneaebrokerestepseoutsideetheireauthorityetoebindeaeriskeandethee
company,ewithefulleknowledgeeofethisemisstep,eagreesetoeplaceecoverageeunderetheetermset
hatetheebrokereset,ebackdatedetoetheedayetheeagreementewasemadeewithetheeclient.

, Discussethreeewayseinewhichehaveechangedetheeeffectivenesseofebrokerages:e-
eCORRECTeeANSWER-1)eEnhanceeprofitability

2)eBuildeclienterelationships
3)eImproveseeffectiveness

Discussewhyeiteisenoteeffectiveetoehaveemultipleecompanyerepresentation.e-
eCORRECTeeANSWER-

Lessepremiumewitheeachecompany,eaesingleelossemayeaffectelosseratioedrastically,ecustome
rsedon'tecareeifeyouerepresentealleavailableeoutfits.

Explaine"scanningetheeexternaleenvironment"eandeitsetwoesubecategories.e-
eCORRECTeeANSWER-

Scanningetheeexternaleenvironmentelookseatetheecompetitiveeenvironmenteandeattemptsetoe
identifyeopportunitieseandethreats.
Theyelookeatetheedistanteenvironmenteandeneareenvironments.

Explaineaeproducte(3epoints):e-eCORRECTeeANSWER-
Whicheproductelinesedoeweeoffer,eservicesesurroundingecoreeproducts,etheechoiceeofebrand
setoeoffer.eNotejustetheecontracteofeinsurance,eit'setheeservicesearoundetheeproduct.

Explainecommunicatingeaseaeleader.e-eCORRECTeeANSWER-
Iteiseaneinteractiveeexchangeeofeverbaleandenon-
verbaleinfo.eManagersemustecommunicateeopenlyeandeeffectively,eandeitemustebeetwoeway,e
nonestressful,eanderespectful.

Explaineflexibilitye-eCORRECTeeANSWER-
Aegoodeplanemustealloweforemodificationeaseiteiseimplemented.

ExplaineGeneraleandeLimitedePartnershipse-eCORRECTeeANSWER-Generale-
eAllepartnerseareegeneralewitheequalerightseanderesponsibilitiesewithinetheecompany

Limitede-
eAteleasteoneegeneraleandeoneelimited.eTheelimitedeareelimitedetoetheeamounteofetheireinvest

ment.

ExplaineHiringe-eCORRECTeeANSWER-
Givingeandeformalelettereofeoffereandeobtainingeaenon-piracyeagreement.

ExplainePeoplee-eCORRECTeeANSWER-
Theeemployeesewhoeinteractewitheclientseareeaekeyefactoreinebuildingeaelongetermerelationsh
ip.

Explaineplace:e-eCORRECTeeANSWER-
Usedetoebeethatetheebrokerageehadetoedecideewhereetheebranchewouldebeeandewhenetoebeeo
pen.eNoweiteshouldefactoreinewhethereorenoteaecallecentreeiseneededeandeifeaneonlineepresen
ceeiseneeded.