8/13/25, 6:38 PM CIC - Agency Management
CIC –AGENCY MANAGEME Operations study guide exam
2025-2026 latest version with complete questions and
accurate detailed answers LATEST UPDATE 2025-2026
-the specific talents and skills employees require
-an awareness of gaps, deficiencies, and surpluses within and
Budget Considerations across departments
for growing an agency
and doing a needs -a determination of how many employees the agency can afford
assessment to hire
-the best time for employees to join the agency
1. Communicate the agency's core principles to shape its
direction and organizational goals
2. Focus on aspirations and behavioral issues that
An agency uses its value
matter most to the agency's leadership
statement to
accomplish several
3. Define the standards of conduct and expectations for all
goals agency members
Communicate these statements orally, written, and electronic
4.
form
Who we
Value statement answers the are?
questions
What we
are?
How we
do it?
1. Budget
Tools to measure agency 2. Income Statement
financial health 3. Balance Sheet
CIC - Agency Managemen
1/3
1
,8/13/25, 6:44 PM CIC - Agency Management
Budget allows an owner/management team to compare monthly results to
projected results
an agency's revenues and expenses over a period of
An income statement shows
time and can depict activity over a month, quarter, or
year
1. Commissions
2. Fee Income
3. Interest/Investment income - interest on agency
Four income sources for an
investments & premium trust account
agency are:
4. Contingency Income - Tracking profit-sharing,
premium requirements, and monitoring losses
and loss reserves
1. Executive Compensation
2. Sales salaries and commissions
3. Staff salaries
Examples of Compensation
4. Employee Benefits
Expenses
5. Payroll Taxes
6. Pension and Profit Sharing
1. Travel and Entertainment
Examples of Selling Expenses 2. Advertising and Promotion
3. Automobile
1. Rent, Utilities, leases, and postage
2. Accounting, legal, and other professional services
Examples of Administrative 3. Automation and data processing
Expenses 4. Education, licenses, and membership fees
5. Marketing/Advertising
1. Conducting a situational analysis
Determining Managing 2. Setting targets for future short and long term expenses
Expenses requires: 3. Establishing a budget
cash, accounts, receivables, marketable securities,
Current Assets include
prepaid expenses within the next 12 months
Long-Term Fixed assets tangible items such as cars, desks, and office equipment
include
accounts payables, accounts current, payroll taxes, and
Current liabilities include
notes payables within the next 12 months
Long-Term liabilities are payments due more than twelve months into the future
2/31
,8/13/25, 6:44 PM CIC - Agency Management
Shareholders Equity includes original start-up capital and earnings retained by the business
Liquidity Ratios help measure an agency's ability to pay its obligations
3/31
, 8/13/25, 6:44 PM CIC - Agency Management
1. Mergers and Acquisitions
2. Change in personnel, ex. key personnel
Common disruptors
3. Creation of new profit centers
within an agency trigger 4. Restructuring and/or expanding
a need for change. 5. Technology Changes
Disruptors include 6. Loss of a significant account
1. Planning
2. Communicate
The 4 steps in planning for
3. Implement
change
4. Evaluate. Adjust. Maintain
is a useful tool for evaluating an agencies strengths,
A SWOT analysis tool
weaknesses, opportunities, and external and internal
threats
identifies what an agency does well and use this
information to facilitate improvement
Strength - SWOT
Look for examples of:
1. unique resources and assets the agency currently has
2. areas in which the agency outperforms its competitors
Identify areas in need of improvement and necessary resources
Weakness - SWOT Look for examples of:
1. Areas in which the agency lags behind its competitors
2. Opportunities the agency has missed because it didn't have the
right resources
Weaknesses often become opportunities. Identify
resources the agency could add and new products
and services it could offer
Opportunities - SWOT
Look for examples of:
1. What upgrade or new technology/software could benefit the
agency
2. What areas in the agency's market are experiencing growth
Identify potential negative impacts for which the agency needs to
prepare
Threats - SWOT
Look for examples of:
1. Potential regulation that could affect the agency's business
2. Competition that could potentially take clients or employees
from the agency
4/31
CIC –AGENCY MANAGEME Operations study guide exam
2025-2026 latest version with complete questions and
accurate detailed answers LATEST UPDATE 2025-2026
-the specific talents and skills employees require
-an awareness of gaps, deficiencies, and surpluses within and
Budget Considerations across departments
for growing an agency
and doing a needs -a determination of how many employees the agency can afford
assessment to hire
-the best time for employees to join the agency
1. Communicate the agency's core principles to shape its
direction and organizational goals
2. Focus on aspirations and behavioral issues that
An agency uses its value
matter most to the agency's leadership
statement to
accomplish several
3. Define the standards of conduct and expectations for all
goals agency members
Communicate these statements orally, written, and electronic
4.
form
Who we
Value statement answers the are?
questions
What we
are?
How we
do it?
1. Budget
Tools to measure agency 2. Income Statement
financial health 3. Balance Sheet
CIC - Agency Managemen
1/3
1
,8/13/25, 6:44 PM CIC - Agency Management
Budget allows an owner/management team to compare monthly results to
projected results
an agency's revenues and expenses over a period of
An income statement shows
time and can depict activity over a month, quarter, or
year
1. Commissions
2. Fee Income
3. Interest/Investment income - interest on agency
Four income sources for an
investments & premium trust account
agency are:
4. Contingency Income - Tracking profit-sharing,
premium requirements, and monitoring losses
and loss reserves
1. Executive Compensation
2. Sales salaries and commissions
3. Staff salaries
Examples of Compensation
4. Employee Benefits
Expenses
5. Payroll Taxes
6. Pension and Profit Sharing
1. Travel and Entertainment
Examples of Selling Expenses 2. Advertising and Promotion
3. Automobile
1. Rent, Utilities, leases, and postage
2. Accounting, legal, and other professional services
Examples of Administrative 3. Automation and data processing
Expenses 4. Education, licenses, and membership fees
5. Marketing/Advertising
1. Conducting a situational analysis
Determining Managing 2. Setting targets for future short and long term expenses
Expenses requires: 3. Establishing a budget
cash, accounts, receivables, marketable securities,
Current Assets include
prepaid expenses within the next 12 months
Long-Term Fixed assets tangible items such as cars, desks, and office equipment
include
accounts payables, accounts current, payroll taxes, and
Current liabilities include
notes payables within the next 12 months
Long-Term liabilities are payments due more than twelve months into the future
2/31
,8/13/25, 6:44 PM CIC - Agency Management
Shareholders Equity includes original start-up capital and earnings retained by the business
Liquidity Ratios help measure an agency's ability to pay its obligations
3/31
, 8/13/25, 6:44 PM CIC - Agency Management
1. Mergers and Acquisitions
2. Change in personnel, ex. key personnel
Common disruptors
3. Creation of new profit centers
within an agency trigger 4. Restructuring and/or expanding
a need for change. 5. Technology Changes
Disruptors include 6. Loss of a significant account
1. Planning
2. Communicate
The 4 steps in planning for
3. Implement
change
4. Evaluate. Adjust. Maintain
is a useful tool for evaluating an agencies strengths,
A SWOT analysis tool
weaknesses, opportunities, and external and internal
threats
identifies what an agency does well and use this
information to facilitate improvement
Strength - SWOT
Look for examples of:
1. unique resources and assets the agency currently has
2. areas in which the agency outperforms its competitors
Identify areas in need of improvement and necessary resources
Weakness - SWOT Look for examples of:
1. Areas in which the agency lags behind its competitors
2. Opportunities the agency has missed because it didn't have the
right resources
Weaknesses often become opportunities. Identify
resources the agency could add and new products
and services it could offer
Opportunities - SWOT
Look for examples of:
1. What upgrade or new technology/software could benefit the
agency
2. What areas in the agency's market are experiencing growth
Identify potential negative impacts for which the agency needs to
prepare
Threats - SWOT
Look for examples of:
1. Potential regulation that could affect the agency's business
2. Competition that could potentially take clients or employees
from the agency
4/31
