CIC Agency Management Questions With 100% Correct Answers.

Explain the Organizational Structures available to Agencies - Sales vs. Service Oriented Large Agencies vs. Small Agencies Publicly Traded vs. Privately Held Explain the Federal and State Regulations on Agencies - Licensing Regulations by State Regulators protect the consumer by making a viable insurance marketplace and monitoring interstate commerce Five Stages of Agency Growth - 1 - Existence - Owner does everything, must be creative to survive 2 - Survival - management heavily involved, needs specific direction to grow, trying to make a profit 3 - Success - Agency is profitable, stable renewals, service oriented 4 - Take Off - careful coordination required to grow, increased staffing needs 5 - Maturity - collaboration/integrity, strategic goals, decentralized Describe how, when and why Agencies move from one Agency Growth Stage to the next - Agency Owner must make all pieces of the puzzle fit together Agency Organization Financials HR Productivity and Effectiveness Sales/Service etc.Compare the various types of Markets available to Insurance Agencies - Standard Markets - Stock Companies, Mutual Companies, Direct Writers Excess/Surplus Lines, MGAs, Self Insurance Funds, Captive Arrangements Describe the Carrier expectations of an Agency - Proven Record of Sales/Business Success Competent Management Identifiable Sales Culture Professional Service Staff Low Loss Ratios, High Closing Costs Identify the Important elements of a Company-Agency Agreement and Considerations when selecting a Carrier to represent - Agency Contracts -Commission Structure -Ownership of Business -Billing -Contingencies/Profit Sharing Selecting a Carrier -financial stability -personnel -products -Company Support Describe the Factors positively or negatively impacting Agency Value - Agency Profitability Retention Ratio Quality of Personnel Public Image Company MarketsExplain the purpose, use and components of an Income Statement - Revenues + Expenses over a period of time