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CISR Agency Operations Exam 2025 — Study Guide,
Practice Test Questions, and Certification Preparation
for Insurance Professionals
Prepare for the CISR Agency Operations Exam 2025 with a complete study guide, practice
test questions, and key exam tips. Learn essential topics in insurance agency management,
operations, communication, customer service, and E&O prevention to earn your Certified
Insurance Service Representative (CISR) designation and advance your career.
• CISR Agency Operations exam 2025
• CISR Agency Operations study guide
• CISR practice test questions
Examples of stakeholders in an insurance agency (7) - ANSWER-Board of Directors
Employees
Vendors
Customers
Industry Associations
Insurance Companies
Government
What is the primary reason for industry regulation? - ANSWER-Consumer protection
What are the 3 types of insurance company ownership classification? - ANSWER-- Stock company
- Mutual company
,2|Page
- Reciprocal exchange company
Which type of insurance company ownership classification describes the following:
-Owned by stockholders & operates with goal to make money for stockholders - ANSWER-Stock
company
Which type of insurance company ownership classification describes the following:
- Owned by policyholders and goal is to provide insurance coverage at or near cost of doing business -
ANSWER-Mutual company
Which type of insurance company ownership classification describes the following:
- Groups of individuals/organizations ("subscribers") who join together into an association of insuring
one another - ANSWER-Reciprocal exchange company
What are 3 ways in which insurance companies distribute their products? - ANSWER-- Independent
Agent (DII/broker)
- Captive Agent (State Farm)
- Direct Writing System (USAA)
How does Expansion and Mergers and Acquisition help an agency grow? - ANSWER-It is a way for the
agency to expand its customer base—by either buying a book of business or an entire agency/group, or
joining a consortium group to gain workforce, additional markets, and diversify books of business
(example: Safeco bought by Liberty Mutual)
What are duties of the sales workforce (producer)? (5) - ANSWER-Identifying prospect
Sales call
Determining property needs
Presenting solutions
Securing buying decision
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What are the duties of the service workforce (CRMs) (3) - ANSWER-- Transacting insurance: discuss
coverage, present quotes, apps & binding
- Account rounding or cross-selling: combining home & auto
- Referral Selling: selling new lines to other who have a business/personal relationship with existing
customer
What are the purposes of a position description? (4) - ANSWER-- Defines acceptable performance
- Describes what duties are to be performed
- Helps with performance evaluations across department
- Support & justify pay
What are the components of a position description? (7) - ANSWER-Position title
Reason for position
Level of authority granted
Responsibilities, duties, functions (p. 66)
Measuring performance
Qualifications
Working conditions
What does an insurance company expect from the agency? (3) - ANSWER-- A good working relationship
between agency/company staff members (competent managers & knowledgeable/professional staff)
- Honest submission with full disclosure of material facts (High close ratio on new business and high
retention ratio)
- Agency premium growth with that company (Low loss ratio)
What does the agency expect from the insurance company? (4) - ANSWER-- Stability in the
marketplace—not hopping in and out of lines of business
- Stability and fairness in its rate structure and underwriting decisions
- Some agency support through advertising, education, or possible management assistance
= Fair and prompt claims handling and service
CISR Agency Operations Exam 2025 — Study Guide,
Practice Test Questions, and Certification Preparation
for Insurance Professionals
Prepare for the CISR Agency Operations Exam 2025 with a complete study guide, practice
test questions, and key exam tips. Learn essential topics in insurance agency management,
operations, communication, customer service, and E&O prevention to earn your Certified
Insurance Service Representative (CISR) designation and advance your career.
• CISR Agency Operations exam 2025
• CISR Agency Operations study guide
• CISR practice test questions
Examples of stakeholders in an insurance agency (7) - ANSWER-Board of Directors
Employees
Vendors
Customers
Industry Associations
Insurance Companies
Government
What is the primary reason for industry regulation? - ANSWER-Consumer protection
What are the 3 types of insurance company ownership classification? - ANSWER-- Stock company
- Mutual company
,2|Page
- Reciprocal exchange company
Which type of insurance company ownership classification describes the following:
-Owned by stockholders & operates with goal to make money for stockholders - ANSWER-Stock
company
Which type of insurance company ownership classification describes the following:
- Owned by policyholders and goal is to provide insurance coverage at or near cost of doing business -
ANSWER-Mutual company
Which type of insurance company ownership classification describes the following:
- Groups of individuals/organizations ("subscribers") who join together into an association of insuring
one another - ANSWER-Reciprocal exchange company
What are 3 ways in which insurance companies distribute their products? - ANSWER-- Independent
Agent (DII/broker)
- Captive Agent (State Farm)
- Direct Writing System (USAA)
How does Expansion and Mergers and Acquisition help an agency grow? - ANSWER-It is a way for the
agency to expand its customer base—by either buying a book of business or an entire agency/group, or
joining a consortium group to gain workforce, additional markets, and diversify books of business
(example: Safeco bought by Liberty Mutual)
What are duties of the sales workforce (producer)? (5) - ANSWER-Identifying prospect
Sales call
Determining property needs
Presenting solutions
Securing buying decision
, 3|Page
What are the duties of the service workforce (CRMs) (3) - ANSWER-- Transacting insurance: discuss
coverage, present quotes, apps & binding
- Account rounding or cross-selling: combining home & auto
- Referral Selling: selling new lines to other who have a business/personal relationship with existing
customer
What are the purposes of a position description? (4) - ANSWER-- Defines acceptable performance
- Describes what duties are to be performed
- Helps with performance evaluations across department
- Support & justify pay
What are the components of a position description? (7) - ANSWER-Position title
Reason for position
Level of authority granted
Responsibilities, duties, functions (p. 66)
Measuring performance
Qualifications
Working conditions
What does an insurance company expect from the agency? (3) - ANSWER-- A good working relationship
between agency/company staff members (competent managers & knowledgeable/professional staff)
- Honest submission with full disclosure of material facts (High close ratio on new business and high
retention ratio)
- Agency premium growth with that company (Low loss ratio)
What does the agency expect from the insurance company? (4) - ANSWER-- Stability in the
marketplace—not hopping in and out of lines of business
- Stability and fairness in its rate structure and underwriting decisions
- Some agency support through advertising, education, or possible management assistance
= Fair and prompt claims handling and service
