CISR Agency Operations QUESTIONS WITH ANSWERS RATED
A+
Standard of Care Owed to Customers: Adequate Coverage - Determine appropriate amount of
coverage; Explain benefits & advantages; Identify loss exposure
Standard of Care Owed to Customers: Proper Coverage - Understand differences among policies;
Use tools to assist in identifying exposure to loss; Keep current w/ changes & innovations
Standard of Care Owed to Customers: Coverage placed in best interest of customer - Best
possible terms; Understand differences among policies; Not placing coverage bases only on
highest commission
Standard of Care Owed to Customers: Prompt communication - Notify customers about changes,
exclusions, transactions, claims, cancellations, non-renewals
Standard of Care Owed to Customers: Coverage placed with financially sound company -
Coverage placed with insurer that can pay a claim; Obtain knowledge if company is experiencing
financial troubles and move insured
Licensing - Each state has established requirements
Pre-Licensing - Specific education required before eligible to take license exam
CE - Specific to license; Statutes (laws); Violations lead to fines, lost license, criminal charges
Agency culture affected by leadership - 1. Vision for the agency
2. Plan of action to advance vision
3. Support from employees
4. Culture becomes well defined and self sustaining
5. Lack of leadership=less success
Factors that affect how an agency distributes its product and provides customer service - 1. # of
employees
2. Single or multiple locations
3. Local, regional, international operation
4. Areas of specialization
5. Use of service centers
Agent/Producer - Acts on behalf of insurance company
Broker - Acts on behalf of the customer
, 5-Step Risk Management Process - 1. Risk Identification (most important: an unknown exposure
is unable to be analyzed, controlled or financed)
2. Risk Analysis
3. Risk Control
4. Risk Finance
5. Risk Administration
Four major classes of exposures - Property
Four major classes of exposures - Liability
Four major classes of exposures - Loss of income/loss of use
Four major classes of exposures - Human exposure
Risk identification methods - Interview
Risk identification methods - Checklist, survey, questionnaire
Risk identification methods - Physical inspection
Risk identification methods - Activity analysis
Risk identification methods - Advertising/Website
Risk identification methods - Document review
Risk Control Techniques: Avoidance - Choose not to own certain property or engage in activity
(not always practical)
Risk Control Techniques: Loss prevention - Reduce frequency of loss occurring (alarm system,
safety training)
Risk Control Techniques: Loss reduction - Reduce severity (safety equipment, seat belt)
Risk Control Techniques: Duplication/Separation - Reduces severity (Back up disks off site,
parking fleet in separate lots)
Risk Control Techniques: Combination - more than one technique
Active retention - When customer knows before the loss that they are financially responsible for
some or all of the loss
Passive retention - When customer finds out after the loss that they are financially response
(whoops)
A+
Standard of Care Owed to Customers: Adequate Coverage - Determine appropriate amount of
coverage; Explain benefits & advantages; Identify loss exposure
Standard of Care Owed to Customers: Proper Coverage - Understand differences among policies;
Use tools to assist in identifying exposure to loss; Keep current w/ changes & innovations
Standard of Care Owed to Customers: Coverage placed in best interest of customer - Best
possible terms; Understand differences among policies; Not placing coverage bases only on
highest commission
Standard of Care Owed to Customers: Prompt communication - Notify customers about changes,
exclusions, transactions, claims, cancellations, non-renewals
Standard of Care Owed to Customers: Coverage placed with financially sound company -
Coverage placed with insurer that can pay a claim; Obtain knowledge if company is experiencing
financial troubles and move insured
Licensing - Each state has established requirements
Pre-Licensing - Specific education required before eligible to take license exam
CE - Specific to license; Statutes (laws); Violations lead to fines, lost license, criminal charges
Agency culture affected by leadership - 1. Vision for the agency
2. Plan of action to advance vision
3. Support from employees
4. Culture becomes well defined and self sustaining
5. Lack of leadership=less success
Factors that affect how an agency distributes its product and provides customer service - 1. # of
employees
2. Single or multiple locations
3. Local, regional, international operation
4. Areas of specialization
5. Use of service centers
Agent/Producer - Acts on behalf of insurance company
Broker - Acts on behalf of the customer
, 5-Step Risk Management Process - 1. Risk Identification (most important: an unknown exposure
is unable to be analyzed, controlled or financed)
2. Risk Analysis
3. Risk Control
4. Risk Finance
5. Risk Administration
Four major classes of exposures - Property
Four major classes of exposures - Liability
Four major classes of exposures - Loss of income/loss of use
Four major classes of exposures - Human exposure
Risk identification methods - Interview
Risk identification methods - Checklist, survey, questionnaire
Risk identification methods - Physical inspection
Risk identification methods - Activity analysis
Risk identification methods - Advertising/Website
Risk identification methods - Document review
Risk Control Techniques: Avoidance - Choose not to own certain property or engage in activity
(not always practical)
Risk Control Techniques: Loss prevention - Reduce frequency of loss occurring (alarm system,
safety training)
Risk Control Techniques: Loss reduction - Reduce severity (safety equipment, seat belt)
Risk Control Techniques: Duplication/Separation - Reduces severity (Back up disks off site,
parking fleet in separate lots)
Risk Control Techniques: Combination - more than one technique
Active retention - When customer knows before the loss that they are financially responsible for
some or all of the loss
Passive retention - When customer finds out after the loss that they are financially response
(whoops)
