CISR Agency Operations Exam Questions With 100%
Verified Answers Already Graded A+
Which one of the following best describes actual authority?
CORRECT ANSWER ✓ ✓ When the agency is expressly given authority in the agency
contract
The primary reason for the regulation of insurance companies is:
CORRECT ANSWER ✓ ✓ To protect insurance consumers
Insurance brokers, who act on behalf of the buyer/client, differ from agents in what way?
CORRECT ANSWER ✓ ✓ Brokers do not have binding authority
Which one of the following statements concerning non-admitted insurance companies
is correct?
CORRECT ANSWER ✓ ✓ Non-admitted insurance companies can only be accessed by an
excess/surplus lines broker
A process involving the transfer of risk from one insurer (the ceding company) to
another (the reinsurer) is called:
CORRECT ANSWER ✓ ✓ Reinsurance
Form of reinsurance in which a contract automatically establishes the terms for
reinsuring a class or classes of business:
CORRECT ANSWER ✓ ✓ Treaty reinsurance
Form of reinsurance where the reinsurer may accept or reject individual risks:
CORRECT ANSWER ✓ ✓ Facultative reinsurance
Which one of the following statements regarding alternative markets is correct?
CORRECT ANSWER ✓ ✓ Agents do not typically have binding authority in alternative
markets
, Which one of the following does NOT normally apply regarding the use of social media
in an insurance agency?
CORRECT ANSWER ✓ ✓ Most agencies provide their staff with a personal email address.
Which one of the following statements best describes a contract?
CORRECT ANSWER ✓ ✓ Oral or written agreements between two parties that create an
obligation to do or not do a particular thing
Which one of the following statements best describes agency stakeholders?
CORRECT ANSWER ✓ ✓ The primary stakeholders are those affected by the
achievement of a firm's objectives
Which one of the following is NOT one of the four benefits of ethical behavior?
CORRECT ANSWER ✓ ✓ Ethical behavior encourages governmental regulation
Which one of the following sources of revenue for insurance agencies is typically the
largest?
CORRECT ANSWER ✓ ✓ Commission
Which one of the following statements best describes how an agency operates?
CORRECT ANSWER ✓ ✓ A larger number of locations may mean that some agency
functions become centralized
Which one of the following is NOT one of the four major classes of exposure to loss?
CORRECT ANSWER ✓ ✓ Loss of use
The best definition of active retention is:
CORRECT ANSWER ✓ ✓ The customer knows before the loss that they are financially
responsible for all or part of the loss
Which one of the following statements regarding the process of identifying loss
exposures is correct?
CORRECT ANSWER ✓ ✓ A document review of the policy is not the best method
because it shows limits but not the actual risks
Which one of the following best describes the risk management process?
CORRECT ANSWER ✓ ✓ Risk identification, risk analysis, risk control, risk finance, risk
administration
Which one of the following statements about the role of personal underwriting
guidelines is incorrect?
Verified Answers Already Graded A+
Which one of the following best describes actual authority?
CORRECT ANSWER ✓ ✓ When the agency is expressly given authority in the agency
contract
The primary reason for the regulation of insurance companies is:
CORRECT ANSWER ✓ ✓ To protect insurance consumers
Insurance brokers, who act on behalf of the buyer/client, differ from agents in what way?
CORRECT ANSWER ✓ ✓ Brokers do not have binding authority
Which one of the following statements concerning non-admitted insurance companies
is correct?
CORRECT ANSWER ✓ ✓ Non-admitted insurance companies can only be accessed by an
excess/surplus lines broker
A process involving the transfer of risk from one insurer (the ceding company) to
another (the reinsurer) is called:
CORRECT ANSWER ✓ ✓ Reinsurance
Form of reinsurance in which a contract automatically establishes the terms for
reinsuring a class or classes of business:
CORRECT ANSWER ✓ ✓ Treaty reinsurance
Form of reinsurance where the reinsurer may accept or reject individual risks:
CORRECT ANSWER ✓ ✓ Facultative reinsurance
Which one of the following statements regarding alternative markets is correct?
CORRECT ANSWER ✓ ✓ Agents do not typically have binding authority in alternative
markets
, Which one of the following does NOT normally apply regarding the use of social media
in an insurance agency?
CORRECT ANSWER ✓ ✓ Most agencies provide their staff with a personal email address.
Which one of the following statements best describes a contract?
CORRECT ANSWER ✓ ✓ Oral or written agreements between two parties that create an
obligation to do or not do a particular thing
Which one of the following statements best describes agency stakeholders?
CORRECT ANSWER ✓ ✓ The primary stakeholders are those affected by the
achievement of a firm's objectives
Which one of the following is NOT one of the four benefits of ethical behavior?
CORRECT ANSWER ✓ ✓ Ethical behavior encourages governmental regulation
Which one of the following sources of revenue for insurance agencies is typically the
largest?
CORRECT ANSWER ✓ ✓ Commission
Which one of the following statements best describes how an agency operates?
CORRECT ANSWER ✓ ✓ A larger number of locations may mean that some agency
functions become centralized
Which one of the following is NOT one of the four major classes of exposure to loss?
CORRECT ANSWER ✓ ✓ Loss of use
The best definition of active retention is:
CORRECT ANSWER ✓ ✓ The customer knows before the loss that they are financially
responsible for all or part of the loss
Which one of the following statements regarding the process of identifying loss
exposures is correct?
CORRECT ANSWER ✓ ✓ A document review of the policy is not the best method
because it shows limits but not the actual risks
Which one of the following best describes the risk management process?
CORRECT ANSWER ✓ ✓ Risk identification, risk analysis, risk control, risk finance, risk
administration
Which one of the following statements about the role of personal underwriting
guidelines is incorrect?
