CISR Agency Operations QUESTIONS WITH ANSWERS RATED
A+
Legal Duties are based on Three Criteria - Peer Standards
Oral and Written Agreements
Statues
Peer Standards - 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) - an agreement between two or more parties wich
creates an obligation to do or to not do something
Statues - written laws open to little interpretation
Actual or Expressed Authourity - expressly given to the agency by the insurance company. It is
granted in the agency contract (agreement).
Implied Authority - 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 - 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 - 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 - Agency cannot generate a quote or conduct business tin that insurance company
Care owed to their Insurance Companies - Loyalty
Good faith
Reasonable Care
Contractual Duties
Loyalty - Act for the benefit of the insurance company regarding matters associated with the
agency contract
,Good Faith - Being honest throughout the entire insurance transaction and acting in the best
interest of the insurance company
Reasonable Care - When one exercises care and concern for the safety of his or herself and
others regarding business conducted with the insurance company
Contractual duties - 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 - 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 - The agency helps the customer determine the appropriate amount of
insurance to meet their needs
Proper coverage - 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 - Placing the best coverage for the
customer based on the specific needs of that customer
Prompt Communication - Notify customers regarding all aspects of their insurance transactions
with the agency including, but not limited to, changes, exclusions, limitations, claims,
cancellations, and non-renewals
Coverage placed with a Financially Sound Insurance Company - It is important to make sure
coverage is placed with an insurance company that will be able to pay claims
Insurance License - makes you eligible to sell and discuss insurance
Continuing Education - Decided at state level, additional training required to maintain licences
Good Ethics - =Good Business
Why is it important to define the agency's clues, vision, and mission - these statements help
define expectations for the agency's employees and distinguish the agency from its competition
thereby setting the culture
The Values Statement - this defines the heart of the organization: it is an expression of the core
priorities and behavioral issues that matter most to the agency's management I.E. What do we
stand for?
, The fvision Statement - What are the current and future goals of the agency
The Mission Statement - action based statement declares what the agency actually does and how
it intends to connect with and serve its customers, and it reveals what makes the agency unique
Smart Goal Setting - Specific
Measurable
Attainable
Relevant
Time-based
Specific Goal - What is the objective that needs to be accomplished
Who is/are the person(s) responsible for it?
What steps will be taken to achieve it
Measurable - must be able to track progress and know when you have reached the finish line
Attainable - realistic goals- not something that sets you up for failure
Relevant - there should be a true benefit attached to reaching the desired objective
Time Based - So everyone will stay the course within a designated time frame
Agency's Brand - included determining its target market(s), positioning its products and areas of
specialization, and defining its personality. It will be a summary of the agency's values, vision,
and mission statemnts
Agency Culutre - behavior and attitudes of the organization and its employees. It is a mix of
leadership, values, traditions, beliefs, interactions, behaviors, and attitudes
Company Culture with WFH - Connection, Collaboration, and communication need to be a
prioirty to keep employees productive
Leadership - should model and communicate the desired behaviors with in the agency
A Lack of Leadership - results in staff members struggling to understand the vision and
grappling with how to unite and adhere to a particular plan or direction
Factors that Impact the Agency's Operations - The Agency Workforce
Areas of Specialization/Lines of Business
Number of Locations, Geographical Size of Operation, and Virtual Environment
Local, Reginal, National, Or international Operations,
Virtual or Hybrid Agency
Organizational Structure
Core Structure
Agency Management Systems
A+
Legal Duties are based on Three Criteria - Peer Standards
Oral and Written Agreements
Statues
Peer Standards - 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) - an agreement between two or more parties wich
creates an obligation to do or to not do something
Statues - written laws open to little interpretation
Actual or Expressed Authourity - expressly given to the agency by the insurance company. It is
granted in the agency contract (agreement).
Implied Authority - 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 - 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 - 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 - Agency cannot generate a quote or conduct business tin that insurance company
Care owed to their Insurance Companies - Loyalty
Good faith
Reasonable Care
Contractual Duties
Loyalty - Act for the benefit of the insurance company regarding matters associated with the
agency contract
,Good Faith - Being honest throughout the entire insurance transaction and acting in the best
interest of the insurance company
Reasonable Care - When one exercises care and concern for the safety of his or herself and
others regarding business conducted with the insurance company
Contractual duties - 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 - 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 - The agency helps the customer determine the appropriate amount of
insurance to meet their needs
Proper coverage - 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 - Placing the best coverage for the
customer based on the specific needs of that customer
Prompt Communication - Notify customers regarding all aspects of their insurance transactions
with the agency including, but not limited to, changes, exclusions, limitations, claims,
cancellations, and non-renewals
Coverage placed with a Financially Sound Insurance Company - It is important to make sure
coverage is placed with an insurance company that will be able to pay claims
Insurance License - makes you eligible to sell and discuss insurance
Continuing Education - Decided at state level, additional training required to maintain licences
Good Ethics - =Good Business
Why is it important to define the agency's clues, vision, and mission - these statements help
define expectations for the agency's employees and distinguish the agency from its competition
thereby setting the culture
The Values Statement - this defines the heart of the organization: it is an expression of the core
priorities and behavioral issues that matter most to the agency's management I.E. What do we
stand for?
, The fvision Statement - What are the current and future goals of the agency
The Mission Statement - action based statement declares what the agency actually does and how
it intends to connect with and serve its customers, and it reveals what makes the agency unique
Smart Goal Setting - Specific
Measurable
Attainable
Relevant
Time-based
Specific Goal - What is the objective that needs to be accomplished
Who is/are the person(s) responsible for it?
What steps will be taken to achieve it
Measurable - must be able to track progress and know when you have reached the finish line
Attainable - realistic goals- not something that sets you up for failure
Relevant - there should be a true benefit attached to reaching the desired objective
Time Based - So everyone will stay the course within a designated time frame
Agency's Brand - included determining its target market(s), positioning its products and areas of
specialization, and defining its personality. It will be a summary of the agency's values, vision,
and mission statemnts
Agency Culutre - behavior and attitudes of the organization and its employees. It is a mix of
leadership, values, traditions, beliefs, interactions, behaviors, and attitudes
Company Culture with WFH - Connection, Collaboration, and communication need to be a
prioirty to keep employees productive
Leadership - should model and communicate the desired behaviors with in the agency
A Lack of Leadership - results in staff members struggling to understand the vision and
grappling with how to unite and adhere to a particular plan or direction
Factors that Impact the Agency's Operations - The Agency Workforce
Areas of Specialization/Lines of Business
Number of Locations, Geographical Size of Operation, and Virtual Environment
Local, Reginal, National, Or international Operations,
Virtual or Hybrid Agency
Organizational Structure
Core Structure
Agency Management Systems
