CISR Agency Operations ACTUAL
UPDATED Exam Questions and CORRECT
Answers
Professional - CORRECT ANSWER - an adjective used to describe appearance, attitude,
or actions
Acting Ethically and Professionally - CORRECT ANSWER - you put the needs of your
clients above your own
Ethics - CORRECT ANSWER - a system or set of moral principles or practice
a set of rules or standards based on a set of principles or values we accept as truths and that
govern our behavior
Factors that influence ethics - CORRECT ANSWER - Friends, Society, Media, Belief
Systems, Educational Institution, Legal Restraints, Family
Benefits of Being Ethical - CORRECT ANSWER - 1. Public Trust and Confidence Gained
2. Government regulation avoided
3. Enhanced Credibility Earned
Public Trust and Confidence Gained - CORRECT ANSWER - it is difficult to criticize
that person's behavior or motives
Government Regulation Avoided - CORRECT ANSWER - acting in an ethical manner
avoids this
Enhanced Credibility Earned - CORRECT ANSWER - it allows people to regard you and
your business as a reliable and trusted resource
,Conducting Business in an Unethical Manner - CORRECT ANSWER - always puts the
customer secondary
Examples of Bending the Rules in Insurance - CORRECT ANSWER - Vehicle Usage
Protection Class
Property Values
Other Residents in the Household
Young drivers in the household
Rate Basis, Classification, or Garaging Address
Signing for an insured
Contemplating the Ethical Response - CORRECT ANSWER - Ask questions to clear
blurey lines in situations
Six Steps to Ethical Decision Making - CORRECT ANSWER - 1. Define the Problem
2. Seek Out Resources
3. Brainstorm a List of Potential Solutions
4. Evaluate those Alternatives
5. Make Your Decision and Implement It
6. Evaluate the Decision
Unethical Decision effects on the Agency's Profitability - CORRECT ANSWER -
Incorrect Rating = Unprofitable Agency
Legal Duties are based on Three Criteria - CORRECT ANSWER - Peer Standards
Oral and Written Agreements
Statues
,Peer Standards - CORRECT ANSWER - require a person's duties be performed in a
manner similar to others in the same position.
Not typically written, but rather associated with generally accepted practice in a specific field
Contracts (Oral and Written Agreements) - CORRECT ANSWER - an agreement between
two or more parties wich creates an obligation to do or to not do something
Statues - CORRECT ANSWER - written laws open to little interpretation
Actual or Expressed Authourity - CORRECT ANSWER - expressly given to the agency
by the insurance company. It is granted in the agency contract (agreement).
Implied Authority - CORRECT ANSWER - describes a situation in which the authority of
the agent is not specifically expressed or communicated, but it still is consistent with the agent
fully exercising the expressed authority granted by the company
Apparent Authority - CORRECT ANSWER - authority the agent appears to have based on
circumstances surrounding that belief. Insurance agencies can be held legally liable under
apparent authority for things that are not expressed
Estoppel - CORRECT ANSWER - the principle which prevents a person from asserting
something contrary to what is implied by a previous action or statement of that person or by a
previous pertinent judicial determination.
The insurance company is stopped from denying the agent's authority when it has allowed that
same activity in the past without taking any corrective action
No Authority - CORRECT ANSWER - Agency cannot generate a quote or conduct
business tin that insurance company
Care owed to their Insurance Companies - CORRECT ANSWER - Loyalty
Good faith
, Reasonable Care
Contractual Duties
Loyalty - CORRECT ANSWER - Act for the benefit of the insurance company regarding
matters associated with the agency contract
Good Faith - CORRECT ANSWER - Being honest throughout the entire insurance
transaction and acting in the best interest of the insurance company
Reasonable Care - CORRECT ANSWER - When one exercises care and concern for the
safety of his or herself and others regarding business conducted with the insurance company
Contractual duties - CORRECT ANSWER - Always act within the authority granted in the
company-agency agreement. It defines duties and responsibilities of both parties as well as
authorizing certain activities
Care owed to the Customer - CORRECT ANSWER - Adequate Coverage
Proper Coverage
Coverage placed in the best interest of the customer
Prompt communication
Coverage placed with a financially sound insurance company
Adequate Coverage - CORRECT ANSWER - The agency helps the customer determine
the appropriate amount of insurance to meet their needs
Proper coverage - CORRECT ANSWER - Must know the available polices, identify the
best polic(ies) for the given exposures, and stay abreast of industry developments in order to
provide pooper coverage for their customers
Coverage plans Ed in the best interests of the customer - CORRECT ANSWER - Placing
the best coverage for the customer based on the specific needs of that customer
UPDATED Exam Questions and CORRECT
Answers
Professional - CORRECT ANSWER - an adjective used to describe appearance, attitude,
or actions
Acting Ethically and Professionally - CORRECT ANSWER - you put the needs of your
clients above your own
Ethics - CORRECT ANSWER - a system or set of moral principles or practice
a set of rules or standards based on a set of principles or values we accept as truths and that
govern our behavior
Factors that influence ethics - CORRECT ANSWER - Friends, Society, Media, Belief
Systems, Educational Institution, Legal Restraints, Family
Benefits of Being Ethical - CORRECT ANSWER - 1. Public Trust and Confidence Gained
2. Government regulation avoided
3. Enhanced Credibility Earned
Public Trust and Confidence Gained - CORRECT ANSWER - it is difficult to criticize
that person's behavior or motives
Government Regulation Avoided - CORRECT ANSWER - acting in an ethical manner
avoids this
Enhanced Credibility Earned - CORRECT ANSWER - it allows people to regard you and
your business as a reliable and trusted resource
,Conducting Business in an Unethical Manner - CORRECT ANSWER - always puts the
customer secondary
Examples of Bending the Rules in Insurance - CORRECT ANSWER - Vehicle Usage
Protection Class
Property Values
Other Residents in the Household
Young drivers in the household
Rate Basis, Classification, or Garaging Address
Signing for an insured
Contemplating the Ethical Response - CORRECT ANSWER - Ask questions to clear
blurey lines in situations
Six Steps to Ethical Decision Making - CORRECT ANSWER - 1. Define the Problem
2. Seek Out Resources
3. Brainstorm a List of Potential Solutions
4. Evaluate those Alternatives
5. Make Your Decision and Implement It
6. Evaluate the Decision
Unethical Decision effects on the Agency's Profitability - CORRECT ANSWER -
Incorrect Rating = Unprofitable Agency
Legal Duties are based on Three Criteria - CORRECT ANSWER - Peer Standards
Oral and Written Agreements
Statues
,Peer Standards - CORRECT ANSWER - require a person's duties be performed in a
manner similar to others in the same position.
Not typically written, but rather associated with generally accepted practice in a specific field
Contracts (Oral and Written Agreements) - CORRECT ANSWER - an agreement between
two or more parties wich creates an obligation to do or to not do something
Statues - CORRECT ANSWER - written laws open to little interpretation
Actual or Expressed Authourity - CORRECT ANSWER - expressly given to the agency
by the insurance company. It is granted in the agency contract (agreement).
Implied Authority - CORRECT ANSWER - describes a situation in which the authority of
the agent is not specifically expressed or communicated, but it still is consistent with the agent
fully exercising the expressed authority granted by the company
Apparent Authority - CORRECT ANSWER - authority the agent appears to have based on
circumstances surrounding that belief. Insurance agencies can be held legally liable under
apparent authority for things that are not expressed
Estoppel - CORRECT ANSWER - the principle which prevents a person from asserting
something contrary to what is implied by a previous action or statement of that person or by a
previous pertinent judicial determination.
The insurance company is stopped from denying the agent's authority when it has allowed that
same activity in the past without taking any corrective action
No Authority - CORRECT ANSWER - Agency cannot generate a quote or conduct
business tin that insurance company
Care owed to their Insurance Companies - CORRECT ANSWER - Loyalty
Good faith
, Reasonable Care
Contractual Duties
Loyalty - CORRECT ANSWER - Act for the benefit of the insurance company regarding
matters associated with the agency contract
Good Faith - CORRECT ANSWER - Being honest throughout the entire insurance
transaction and acting in the best interest of the insurance company
Reasonable Care - CORRECT ANSWER - When one exercises care and concern for the
safety of his or herself and others regarding business conducted with the insurance company
Contractual duties - CORRECT ANSWER - Always act within the authority granted in the
company-agency agreement. It defines duties and responsibilities of both parties as well as
authorizing certain activities
Care owed to the Customer - CORRECT ANSWER - Adequate Coverage
Proper Coverage
Coverage placed in the best interest of the customer
Prompt communication
Coverage placed with a financially sound insurance company
Adequate Coverage - CORRECT ANSWER - The agency helps the customer determine
the appropriate amount of insurance to meet their needs
Proper coverage - CORRECT ANSWER - Must know the available polices, identify the
best polic(ies) for the given exposures, and stay abreast of industry developments in order to
provide pooper coverage for their customers
Coverage plans Ed in the best interests of the customer - CORRECT ANSWER - Placing
the best coverage for the customer based on the specific needs of that customer
