CISR Agency Operations QUESTIONS WITH ANSWERS RATED
A+
How might continuing education prepare an insurance agent to effectively handle a complex risk
if the customer's expectations differ from the insurance company's ability to write the risk? - the
agent will be better prepared with greater knowledge on coverages and the target appetite of
various carriers. help be aware of changes and innovations in the industry. confidence to speak
with clients on underwriting process and guidelines.
Limitations on how credit scoring is used in underwriting is an example of which one of the
three topics concerning the benefits of ethical behavior? - Government Regulation
Property values, protection class, other residents in the household, and rates based on
classification or garaging address are all areas in which there may be __________ faced by
insurance professionals.
peer standards
apparent authority
ethical issues - ethical issues
Micah is driving down the road in his Chevy and adheres to the neighborhood speed limit of 25
MPH. By doing so, Micah is following a ___________.
statute
contract
peer standard - Satute
When the agency helps the customer determine the appropriate amount of insurance to meet their
needs, this is known as providing adequate coverage. - True
When someone is prevented from arguing something or asserting a right that contradicts what
they previously said or agreed-to by law, this is known as estoppel. - True
When it comes to ethical decision-making, thinking about whether a problem has three
potentially negative consequences means you are "seeking out resources." - False
Why is it important for an insurance agency to have values, vision, and mission statements? -
These statements define strategic direction; they help define expectations for the agency's
employees, distinguish agency from its competition (supporting agency's brand), and set the
culture.
What are some factors that impact how the agency distributes its products and serves their
customers? - The number of employees (workforce), space planning, organization of agency
(structure), technology (agency management system)
Components of Position Description - Position title
, Reason for the position
Level of Authority Granted
Responsibilities, duties, and functions
Measuring performance
Qualifications
Working conditions
Defining the heart of the organization, core priorities, and behavioral issues that matter most to
the agency's management would describe the intent of the agency's mission statement.
True
False - False
Jensen Insurance Agency seeks to develop a client referral program by the third quarter of 2021.
Adhering to the principles of SMART goal-setting, this goal reflects a goal that is time-based.
True
False - True
Transacting insurance, account rounding, and cross-selling are all tasks performed by what
position in the insurance agency?
Office Manager
Account Manager
New Client Business Manager - AM
Which one of the following questions is NOT among those the agency's management should be
asking when determining what is needed to meet or exceed its goals?
What products will be sold?
How long has the agency been in business?
What is/are the source(s) of revenue?
What kind of space-planning is needed? - How long has the agency been in business?
Carla is an insurance broker, but not an insurance agent. What does Carla NOT have the
authority to do?
Act on behalf of the customer
Identify prospects
Authorize insurance transactions (bind coverage) - Authorize insurance transactions (bind
coverage)
Compare and contrast treaty and facultative reinsurance - Treaty: ceding insurance company
agrees to transfer certain classes of business that qualify to the reinsurance company as described
in treaty agreement
Facultative: based on individual risks under contract; reinsurer retains faculty to accept or reject
each risk offered by ceding company.
List the four logical classifications of exposures to loss. - Property
Human Resources
Liability
A+
How might continuing education prepare an insurance agent to effectively handle a complex risk
if the customer's expectations differ from the insurance company's ability to write the risk? - the
agent will be better prepared with greater knowledge on coverages and the target appetite of
various carriers. help be aware of changes and innovations in the industry. confidence to speak
with clients on underwriting process and guidelines.
Limitations on how credit scoring is used in underwriting is an example of which one of the
three topics concerning the benefits of ethical behavior? - Government Regulation
Property values, protection class, other residents in the household, and rates based on
classification or garaging address are all areas in which there may be __________ faced by
insurance professionals.
peer standards
apparent authority
ethical issues - ethical issues
Micah is driving down the road in his Chevy and adheres to the neighborhood speed limit of 25
MPH. By doing so, Micah is following a ___________.
statute
contract
peer standard - Satute
When the agency helps the customer determine the appropriate amount of insurance to meet their
needs, this is known as providing adequate coverage. - True
When someone is prevented from arguing something or asserting a right that contradicts what
they previously said or agreed-to by law, this is known as estoppel. - True
When it comes to ethical decision-making, thinking about whether a problem has three
potentially negative consequences means you are "seeking out resources." - False
Why is it important for an insurance agency to have values, vision, and mission statements? -
These statements define strategic direction; they help define expectations for the agency's
employees, distinguish agency from its competition (supporting agency's brand), and set the
culture.
What are some factors that impact how the agency distributes its products and serves their
customers? - The number of employees (workforce), space planning, organization of agency
(structure), technology (agency management system)
Components of Position Description - Position title
, Reason for the position
Level of Authority Granted
Responsibilities, duties, and functions
Measuring performance
Qualifications
Working conditions
Defining the heart of the organization, core priorities, and behavioral issues that matter most to
the agency's management would describe the intent of the agency's mission statement.
True
False - False
Jensen Insurance Agency seeks to develop a client referral program by the third quarter of 2021.
Adhering to the principles of SMART goal-setting, this goal reflects a goal that is time-based.
True
False - True
Transacting insurance, account rounding, and cross-selling are all tasks performed by what
position in the insurance agency?
Office Manager
Account Manager
New Client Business Manager - AM
Which one of the following questions is NOT among those the agency's management should be
asking when determining what is needed to meet or exceed its goals?
What products will be sold?
How long has the agency been in business?
What is/are the source(s) of revenue?
What kind of space-planning is needed? - How long has the agency been in business?
Carla is an insurance broker, but not an insurance agent. What does Carla NOT have the
authority to do?
Act on behalf of the customer
Identify prospects
Authorize insurance transactions (bind coverage) - Authorize insurance transactions (bind
coverage)
Compare and contrast treaty and facultative reinsurance - Treaty: ceding insurance company
agrees to transfer certain classes of business that qualify to the reinsurance company as described
in treaty agreement
Facultative: based on individual risks under contract; reinsurer retains faculty to accept or reject
each risk offered by ceding company.
List the four logical classifications of exposures to loss. - Property
Human Resources
Liability
