CIC Agency Management Exam

Types of Agencies -Answer 1. Standard lines P&C 2. Personal Lines only 3. Commercial Lines only 4. Non-StandardAuto 5. Life & Health Agency 6. Combination of the above Banks vs. Agencies -Answer 1. How much will the agency culture change if your agency is acquired by a bank? 2. Banks are governed by very specific federal and state laws that require them to function in a certain manner. 3. Banks tend to be more formal (in terms of rules, dress code, etc.) than agencies. 4. When acquired, will agency management remain the same? Who will agency management report to? How much leeway will the bank's agency manager have? Publicly Traded vs. Privately Held -Answer 1. What role does Wall Street play in the agency culture? Is the focus on long term or next quarter's results? What role does stock price play? 2. Publicly traded agencies are more focused on near term objectives. 3. Publicly traded agencies are more focused on achieving a higher rate of return (20 - 25%) than on employee satisfaction. Exclusive vs. Independent -Answer 1. Ability / Inability to place business with other carriers. This is determined by the exclusive carrier and is based on a variety of factors including type of business, location, etc. Can be frustrating to staff and owners. 2. Agency owners (and employees) get frustrated when exclusive carriers shut down production (i.e. homeowners in Florida). 3. Exclusive Agents tend to be smaller and less sophisticated in terms of automation and training. Single Location vs. Multi-locations -Answer Multiple locations require additional systems and procedures to make sure all employees are treated equally fair. 2. Are employees at one location treated the same as employees in a different location? 3. Is there friendly or unfriendly competition between locations? Large Agencies vs. Small Agencies -Answer 1. The more employees you have the less crucial each employee becomes when it comes to satisfying client needs. 2. The more employees you have the more flexibility you have when it comes to vacation, holidays, etc. 3. The more employees you have the greater the chance you are required to follow certain Federal / State / Local non-discrimination laws (See HR Section.) Sales vs. Service -Answer 1. Sales focused agencies have a greater emphasis on sales and competition between employees. 2. Service focused agencies place greater emp