CISR Agency Operations Exam Questions and Verified Answers/Accurate Solutions| New
Update Already Graded A+
Which one of the following best describes actual authority? When the agency is expressly
given authority in the agency contract
Which one of the following statements best describes the standard of care an insurance agency
owes an insurance company? Loyalty, good faith, reasonable care and contractual duties
Which one of the following is not one of the four benefits of ethical behavior? thical
behavior encourages governmental regulation
Which one of the following best describes a contract? Oral or written agreements between
two parties that creates an obligation to do or not do a particular thing
Which one of the following statements best describes agency stakeholders? The primary
stakeholders are any group or individual who is affected by the achievement of a firm's
objective
Which one of the following sources of revenue for insurance agencies is typically the largest
source of income for the insurance agency? Commission
Which one of the following statements best describes how an agency operates? A larger
number of locations may mean that some features of the agency be centralized
Which one of the following is not one of the four major classes of exposure to loss? Loss of
use
Insurance brokers, who act on behalf of the buyer/client, differ from agents in what way?
Brokers do not have binding authority
, The best definition of active retention is: The customer knows before the loss that he/she is
financially responsible for all or part of the loss
Which one of the following statements regarding the process of identifying loss exposures is
correct? A document review of the policy is not the best method because it shows the
limits, but not the risks
Which one of the following best describes the risk management process? Risk identification,
risk analysis, risk control, risk finance, risk administration
The primary reason for the regulation of insurance companies is: To protect insurance
consumers
Which one of the following statements regarding alternative markets is correct? Agents do
not typically have binding authority in alternative markets
Which one of the following statements concerning non-admitted insurance companies is
correct? Non-admitted insurance companies can only be accessed by an excess/surplus lines
broker
The Managing General Agent (or Agency) can best be described as representing: One or
more insurance companies
A process involving the transfer of risk from one insurer call the ceding (or primary) company,
to another called the reinsure Reinsurance
Form of reinsurance in which a contract automatically establishes the terms for reinsuring a
class or classes of business. Treaty Reinsurance
Update Already Graded A+
Which one of the following best describes actual authority? When the agency is expressly
given authority in the agency contract
Which one of the following statements best describes the standard of care an insurance agency
owes an insurance company? Loyalty, good faith, reasonable care and contractual duties
Which one of the following is not one of the four benefits of ethical behavior? thical
behavior encourages governmental regulation
Which one of the following best describes a contract? Oral or written agreements between
two parties that creates an obligation to do or not do a particular thing
Which one of the following statements best describes agency stakeholders? The primary
stakeholders are any group or individual who is affected by the achievement of a firm's
objective
Which one of the following sources of revenue for insurance agencies is typically the largest
source of income for the insurance agency? Commission
Which one of the following statements best describes how an agency operates? A larger
number of locations may mean that some features of the agency be centralized
Which one of the following is not one of the four major classes of exposure to loss? Loss of
use
Insurance brokers, who act on behalf of the buyer/client, differ from agents in what way?
Brokers do not have binding authority
, The best definition of active retention is: The customer knows before the loss that he/she is
financially responsible for all or part of the loss
Which one of the following statements regarding the process of identifying loss exposures is
correct? A document review of the policy is not the best method because it shows the
limits, but not the risks
Which one of the following best describes the risk management process? Risk identification,
risk analysis, risk control, risk finance, risk administration
The primary reason for the regulation of insurance companies is: To protect insurance
consumers
Which one of the following statements regarding alternative markets is correct? Agents do
not typically have binding authority in alternative markets
Which one of the following statements concerning non-admitted insurance companies is
correct? Non-admitted insurance companies can only be accessed by an excess/surplus lines
broker
The Managing General Agent (or Agency) can best be described as representing: One or
more insurance companies
A process involving the transfer of risk from one insurer call the ceding (or primary) company,
to another called the reinsure Reinsurance
Form of reinsurance in which a contract automatically establishes the terms for reinsuring a
class or classes of business. Treaty Reinsurance
