CIC - Agency Management Exam 2025-2026 most
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3 Types of compensation - CORRECT ANSWER: 1. Entry-Level
2. Mid-Level
3. Maximum Level
A comparative rating system is - CORRECT ANSWER: a third-party, vendor, or rating
program that enables an agency to obtain accurate risk quotes from several carriers
A legal agent is - CORRECT ANSWER: a party authorized to act ethically on behalf of
another
A multigenerational and multicultural workforce connects an agency to - CORRECT
ANSWER: the larger world, creating market opportunities
A realistic number for an agency to determine what number of new accounts is realistic -
CORRECT ANSWER: 1. Consider the # of existing accounts
2. # of employees
3. quality of technology required to support accounts
4. Workflows
5. Procedures
A successful agency should recruit, hire, manage, and develop good employees by
asking - CORRECT ANSWER: Who - Define the type of person the agency wants to
recruit and retain
,What - Describe the ideal employees profile
Why - Hiring the right employee makes a huge difference to the success of an agency.
Hire people who embrace the agency culture and who will become leaders within the
agency
A SWOT analysis tool - CORRECT ANSWER: is a useful tool for evaluating an agencies
strengths, weaknesses, opportunities, and external and internal threats
Actual or Express Authority - CORRECT ANSWER: is plainly granted, either orally or in
writing by the insurance company to an agent.
Allows the agent to countersign, issue and deliver policies & binders, cancel policies,
collect premiums, and provide customer service
Additional types of agreements an agency may want to consider using - CORRECT
ANSWER: 1. Employee Non-Disclosure and Confidentiality Agreement
2. Non-Compete Agreement
3. Non-Piracy Agreement
Advantages of External Professional Development - CORRECT ANSWER: 1. Outside
instructors may have greater expertise
2. Local agency is unaffected by absence of less-productive employee
3. Employee can interact with those seeking the same training
Advantages of Internal Professional Development - CORRECT ANSWER: 1. Fewer
Expenses
2. Differentiated Training
,3. Access to a vast selection of online training
4. Inexpensive webinars that require only an internet connection
Agents are expected to by law: - CORRECT ANSWER: 1. notify the client of policy
expiration when the agent receives the information
2. Investigate the solvency of an insurance company
3. Renew a policy or notify the client of non-renewal
An agency can take specific steps like, to increase retention - CORRECT ANSWER: 1.
evaluate the potential for increased profit through higher retention
2. Identify opportunities to increase retention such as improved services, processes,
etc.
3. setting reasonable retention goals
An agency should obtain a survey of compensation within the agency operating area
seeking information like - CORRECT ANSWER: 1. Worker availability
2. Employee Benefits
3. Working Conditions
4. Job Security
An agency situational analysis also includes analysis of: - CORRECT ANSWER:
External Factors:
1. competition
2. Regulatory Environment
3. Economic trends
4. Market Conditions
Internal Factors:
1. Productivity
, 2. Financials
3. Accounts/clients
4. Sales and Support
An agency uses its value statement to accomplish several goals - CORRECT ANSWER:
1. Communicate the agency's core principles to 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 expectations for all agency members
4. Communicate these statements orally, written, and electronic form
An agency's 5 growth stages - CORRECT ANSWER: 1. Start-Up
2. Development & Growth
3. Success
4. Expansion
5. Maturity
An agency's mission statement should - CORRECT ANSWER: -provide a clear
statement of an agency's purpose 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
An agency's vision statement answers - CORRECT ANSWER: Where do we want to
go?
recent version Comprehensive 250 questions
and verified answers accurate solutions Already
graded A+ Get it 100% correct
3 Types of compensation - CORRECT ANSWER: 1. Entry-Level
2. Mid-Level
3. Maximum Level
A comparative rating system is - CORRECT ANSWER: a third-party, vendor, or rating
program that enables an agency to obtain accurate risk quotes from several carriers
A legal agent is - CORRECT ANSWER: a party authorized to act ethically on behalf of
another
A multigenerational and multicultural workforce connects an agency to - CORRECT
ANSWER: the larger world, creating market opportunities
A realistic number for an agency to determine what number of new accounts is realistic -
CORRECT ANSWER: 1. Consider the # of existing accounts
2. # of employees
3. quality of technology required to support accounts
4. Workflows
5. Procedures
A successful agency should recruit, hire, manage, and develop good employees by
asking - CORRECT ANSWER: Who - Define the type of person the agency wants to
recruit and retain
,What - Describe the ideal employees profile
Why - Hiring the right employee makes a huge difference to the success of an agency.
Hire people who embrace the agency culture and who will become leaders within the
agency
A SWOT analysis tool - CORRECT ANSWER: is a useful tool for evaluating an agencies
strengths, weaknesses, opportunities, and external and internal threats
Actual or Express Authority - CORRECT ANSWER: is plainly granted, either orally or in
writing by the insurance company to an agent.
Allows the agent to countersign, issue and deliver policies & binders, cancel policies,
collect premiums, and provide customer service
Additional types of agreements an agency may want to consider using - CORRECT
ANSWER: 1. Employee Non-Disclosure and Confidentiality Agreement
2. Non-Compete Agreement
3. Non-Piracy Agreement
Advantages of External Professional Development - CORRECT ANSWER: 1. Outside
instructors may have greater expertise
2. Local agency is unaffected by absence of less-productive employee
3. Employee can interact with those seeking the same training
Advantages of Internal Professional Development - CORRECT ANSWER: 1. Fewer
Expenses
2. Differentiated Training
,3. Access to a vast selection of online training
4. Inexpensive webinars that require only an internet connection
Agents are expected to by law: - CORRECT ANSWER: 1. notify the client of policy
expiration when the agent receives the information
2. Investigate the solvency of an insurance company
3. Renew a policy or notify the client of non-renewal
An agency can take specific steps like, to increase retention - CORRECT ANSWER: 1.
evaluate the potential for increased profit through higher retention
2. Identify opportunities to increase retention such as improved services, processes,
etc.
3. setting reasonable retention goals
An agency should obtain a survey of compensation within the agency operating area
seeking information like - CORRECT ANSWER: 1. Worker availability
2. Employee Benefits
3. Working Conditions
4. Job Security
An agency situational analysis also includes analysis of: - CORRECT ANSWER:
External Factors:
1. competition
2. Regulatory Environment
3. Economic trends
4. Market Conditions
Internal Factors:
1. Productivity
, 2. Financials
3. Accounts/clients
4. Sales and Support
An agency uses its value statement to accomplish several goals - CORRECT ANSWER:
1. Communicate the agency's core principles to 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 expectations for all agency members
4. Communicate these statements orally, written, and electronic form
An agency's 5 growth stages - CORRECT ANSWER: 1. Start-Up
2. Development & Growth
3. Success
4. Expansion
5. Maturity
An agency's mission statement should - CORRECT ANSWER: -provide a clear
statement of an agency's purpose 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
An agency's vision statement answers - CORRECT ANSWER: Where do we want to
go?
