CIC AGENCY MANAGEMENT EXAM QUESTIONS AND ANSWERS
CIC - Agency Management
(VERIFIED AND WELL DETAILED ANSWERS) LATEST UPDATE
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1. Budget Considerations for growing an -the specific talents and skills employees re-
agency and doing a needs assessment quire
-an awareness of gaps, deficiencies, and sur-
pluses within and across departments
-a determination of how many employees the
agency can afford to hire
-the best time for employees to join the agency
2. An agency uses its value statement to 1. Communicate the agency's core principles to
accomplish several goals shape its direction and organizational goals
2. Focus on aspirations and behavioral issues
that matter most to the agency's leadership
3. Define the standards of conduct and expecta-
tions for all agency members
4. Communicate these statements orally, written,
and electronic form
3. Value statement answers the questions Who we are?
What we are?
How we do it?
4. An example of a value statement The smith Agency values helping local business-
es succeed
5. An agency's vision statement should 1. Communicate a clear picture of what an
agency is trying to achieve
2. Identifies characteristics that:
, CIC - Agency Management
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-reflect the long-range goals of the agency's pol-
icyholders
-project the view of what the agency aspires to
be
-guide the agency's strategic development
6. An agency's vision statement answers Where do we want to go?
7. An example of a vision statement The vision of the Smith Agency is to be a fully em-
ployee-owned agency that is recognized as the
premier commercial lines agency in the region
8. An agency's mission statement should -provide a clear statement of an agency's pur-
pose and focus
-Identify characteristics that are broadly stated in
terms of service, income, and profit
-establish clear growth goals serving its key
stakeholders, clients, and employees
9. An example of a mission statement ABC Agency will provide quality personal and
commercial insurance products to the clients lo-
cated within our trade area to help them achieve
their financial security goals
10. Several considerations that contribute -Target market niches
to establishing an agency's goals -Agency personnel and productivity
-Market territory
-Multiple locations
-Marketing and Sales
11. Long-Range Planning occurs over 3 to 5 years
-establishes purpose, continuity, and direction
, CIC - Agency Management
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-focuses on broad goals that will remain relevant
years later
-provides a broad picture of where an agency is
headed
12. Short-Range Planning Usually extends over a 12 month period
-more specific and provides details that fit within
the framework of the long-term plan
-Involves the production of detailed action plans
that organize and prioritize action steps
-Communicate roles and responsibilities
-offers guidance
-provides an agency's daily/weekly/monthly ac-
tion agendas
13. S-M-A-R-T Specific - Measurable - Attainable - Realistic -
Timely
14. An agency's 5 growth stages 1. Start-Up
2. Development & Growth
3. Success
4. Expansion
5. Maturity
15. Start-up companies owner or management team handles every-
thing
-the agency is only beginning to establish its
client base, production, and service is unstable
16. Development & Growth -an increased number of clients/account
-make efforts to balance revenue and expenses
, CIC - Agency Management
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-owner/management team remains involved in
daily operations
17. Success -agency is profitable and follows well-executed
procedures
-owner/management team delegates some
sales and service activities
18. Expansion -an agency grows rapidly and targets new mar-
keting territories
19. Maturity -agency is fully developed and uses sophisticat-
ed systems
-emphasis on collaboration and building pro-
fessional integrity
-CEO/management team focuses on strategic
goals, planning, human resource development,
and support systems
20. Factors that asses an agency's financial 1. Profitability
health 2. Accounts Receivable - able to collect payments
in a timely manner
3. Retention Ratio
4. Average commissions - Producer compensa-
tion structure - who owns the book of business
5. Competencies of personnel - company mar-
kets
6. Brand - positive or negative image in the com-
munity
21. Tools to measure agency financial 1. Budget
health 2. Income Statement
3. Balance Sheet
CIC - Agency Management
(VERIFIED AND WELL DETAILED ANSWERS) LATEST UPDATE
Study online at https://quizlet.com/_7m50qb
1. Budget Considerations for growing an -the specific talents and skills employees re-
agency and doing a needs assessment quire
-an awareness of gaps, deficiencies, and sur-
pluses within and across departments
-a determination of how many employees the
agency can afford to hire
-the best time for employees to join the agency
2. An agency uses its value statement to 1. Communicate the agency's core principles to
accomplish several goals shape its direction and organizational goals
2. Focus on aspirations and behavioral issues
that matter most to the agency's leadership
3. Define the standards of conduct and expecta-
tions for all agency members
4. Communicate these statements orally, written,
and electronic form
3. Value statement answers the questions Who we are?
What we are?
How we do it?
4. An example of a value statement The smith Agency values helping local business-
es succeed
5. An agency's vision statement should 1. Communicate a clear picture of what an
agency is trying to achieve
2. Identifies characteristics that:
, CIC - Agency Management
Study online at https://quizlet.com/_7m50qb
-reflect the long-range goals of the agency's pol-
icyholders
-project the view of what the agency aspires to
be
-guide the agency's strategic development
6. An agency's vision statement answers Where do we want to go?
7. An example of a vision statement The vision of the Smith Agency is to be a fully em-
ployee-owned agency that is recognized as the
premier commercial lines agency in the region
8. An agency's mission statement should -provide a clear statement of an agency's pur-
pose and focus
-Identify characteristics that are broadly stated in
terms of service, income, and profit
-establish clear growth goals serving its key
stakeholders, clients, and employees
9. An example of a mission statement ABC Agency will provide quality personal and
commercial insurance products to the clients lo-
cated within our trade area to help them achieve
their financial security goals
10. Several considerations that contribute -Target market niches
to establishing an agency's goals -Agency personnel and productivity
-Market territory
-Multiple locations
-Marketing and Sales
11. Long-Range Planning occurs over 3 to 5 years
-establishes purpose, continuity, and direction
, CIC - Agency Management
Study online at https://quizlet.com/_7m50qb
-focuses on broad goals that will remain relevant
years later
-provides a broad picture of where an agency is
headed
12. Short-Range Planning Usually extends over a 12 month period
-more specific and provides details that fit within
the framework of the long-term plan
-Involves the production of detailed action plans
that organize and prioritize action steps
-Communicate roles and responsibilities
-offers guidance
-provides an agency's daily/weekly/monthly ac-
tion agendas
13. S-M-A-R-T Specific - Measurable - Attainable - Realistic -
Timely
14. An agency's 5 growth stages 1. Start-Up
2. Development & Growth
3. Success
4. Expansion
5. Maturity
15. Start-up companies owner or management team handles every-
thing
-the agency is only beginning to establish its
client base, production, and service is unstable
16. Development & Growth -an increased number of clients/account
-make efforts to balance revenue and expenses
, CIC - Agency Management
Study online at https://quizlet.com/_7m50qb
-owner/management team remains involved in
daily operations
17. Success -agency is profitable and follows well-executed
procedures
-owner/management team delegates some
sales and service activities
18. Expansion -an agency grows rapidly and targets new mar-
keting territories
19. Maturity -agency is fully developed and uses sophisticat-
ed systems
-emphasis on collaboration and building pro-
fessional integrity
-CEO/management team focuses on strategic
goals, planning, human resource development,
and support systems
20. Factors that asses an agency's financial 1. Profitability
health 2. Accounts Receivable - able to collect payments
in a timely manner
3. Retention Ratio
4. Average commissions - Producer compensa-
tion structure - who owns the book of business
5. Competencies of personnel - company mar-
kets
6. Brand - positive or negative image in the com-
munity
21. Tools to measure agency financial 1. Budget
health 2. Income Statement
3. Balance Sheet
