CISR AGENCY OPERATIONS EXAMS SCRIPT UPDATED
EXAM QUESTIONS AND ANSWERS GRADED A+
✔✔Investment income - ✔✔Generated from the investment of the agencies' assests
✔✔Sales & service - ✔✔Agencies divide their personnel into two major categories:
✔✔Sales staff - ✔✔Comprised of agents or brokers with the responsibility to identify
prospects, make sales calls, determine prospects needs, present solutions and secure
buying decision
✔✔Broker - ✔✔If the individual is placing insurance coverage with a company for which
the individual does not have a contract, they are acting as a _______
✔✔Agent - ✔✔If the individual is placing insurance coverage with a company for which
the individual has a contract, they are acting as a _______
✔✔True - ✔✔T/F. A broker does not have binding authority
✔✔customer - ✔✔Brokers act on behalf of the ______
✔✔insurance company - ✔✔Agents act on behalf of the _____
✔✔Producer - ✔✔What is another name for an agent/broker
✔✔Horizontal structure - ✔✔Agencies with few employees operate this way. Staff will
report directly to the owner
✔✔Vertical structure - ✔✔Larger agencies operate this way. Division of job functions
and responsibilities are well defined
✔✔Identification, analysis, control, finance, administration - ✔✔What are the steps of
risk management?
✔✔Risk Identification - ✔✔This is the most important step in the risk management
process
✔✔Property, human resources, liability, net income - ✔✔What are the four major
classes of exposure to loss?
✔✔List of Assets - ✔✔A checklist best suited for property and physical assets.
✔✔Activity or situation list - ✔✔Best suited for liability and human assets
, ✔✔Perils Analysis - ✔✔Commonly used to identify the potential cause of loss from
human, economic, and natural perils
✔✔Insurance checklist - ✔✔Used to determine the feasibility of contractual transfer
✔✔Industry list - ✔✔Checklist specific to certain operation or industry and is generally
tailored to specific assets, activities, perils, and insurable exposures commonly found in
that industry or operation
✔✔physical inspections - ✔✔Conducted by informal visits to critical sites.
✔✔Avoid, Prevent, Reduce, Segregate, Transfer - ✔✔What are the ways to control
risk?
✔✔active retention - ✔✔When the customer knows before the loss that they are
financially responsible for all or some of the loss
✔✔passive retention - ✔✔when the customer finds out after a loss that they are
financially responsible for the loss
✔✔Stock or mutual companies - ✔✔Insurance companies can be formed as what two
things?
✔✔independent agent - ✔✔They represent and work with various insurance companies
having the ability to compare, offer and sell policies from companies they represent
✔✔Captive agent - ✔✔They work only for one insurance company and therefore are
limited to only selling policies for that company
✔✔direct writer sytem - ✔✔What is another name for a captive agent?
✔✔Lloyds of London - ✔✔Market for difficult to insure risks. Not an insurer, but a
society of members who are grouped together to insure risks
✔✔Managing General Agent (MGA) - ✔✔An authorized agent of the primary insurer
that manages all or part of the primary insurer's insurance activities, usually in a specific
geographic area. Have authority to appoint retail agents
✔✔Reciprocals - ✔✔Groups of individuals or organizations, called subscribers, who join
together into an association for the purpose of insuring one another.
✔✔Risk retention group - ✔✔Insurance company that each of the policyholders is also
a stockholder. The members are businesses with related or similar activities, and the
coverage provided is limited to liability insurance.
EXAM QUESTIONS AND ANSWERS GRADED A+
✔✔Investment income - ✔✔Generated from the investment of the agencies' assests
✔✔Sales & service - ✔✔Agencies divide their personnel into two major categories:
✔✔Sales staff - ✔✔Comprised of agents or brokers with the responsibility to identify
prospects, make sales calls, determine prospects needs, present solutions and secure
buying decision
✔✔Broker - ✔✔If the individual is placing insurance coverage with a company for which
the individual does not have a contract, they are acting as a _______
✔✔Agent - ✔✔If the individual is placing insurance coverage with a company for which
the individual has a contract, they are acting as a _______
✔✔True - ✔✔T/F. A broker does not have binding authority
✔✔customer - ✔✔Brokers act on behalf of the ______
✔✔insurance company - ✔✔Agents act on behalf of the _____
✔✔Producer - ✔✔What is another name for an agent/broker
✔✔Horizontal structure - ✔✔Agencies with few employees operate this way. Staff will
report directly to the owner
✔✔Vertical structure - ✔✔Larger agencies operate this way. Division of job functions
and responsibilities are well defined
✔✔Identification, analysis, control, finance, administration - ✔✔What are the steps of
risk management?
✔✔Risk Identification - ✔✔This is the most important step in the risk management
process
✔✔Property, human resources, liability, net income - ✔✔What are the four major
classes of exposure to loss?
✔✔List of Assets - ✔✔A checklist best suited for property and physical assets.
✔✔Activity or situation list - ✔✔Best suited for liability and human assets
, ✔✔Perils Analysis - ✔✔Commonly used to identify the potential cause of loss from
human, economic, and natural perils
✔✔Insurance checklist - ✔✔Used to determine the feasibility of contractual transfer
✔✔Industry list - ✔✔Checklist specific to certain operation or industry and is generally
tailored to specific assets, activities, perils, and insurable exposures commonly found in
that industry or operation
✔✔physical inspections - ✔✔Conducted by informal visits to critical sites.
✔✔Avoid, Prevent, Reduce, Segregate, Transfer - ✔✔What are the ways to control
risk?
✔✔active retention - ✔✔When the customer knows before the loss that they are
financially responsible for all or some of the loss
✔✔passive retention - ✔✔when the customer finds out after a loss that they are
financially responsible for the loss
✔✔Stock or mutual companies - ✔✔Insurance companies can be formed as what two
things?
✔✔independent agent - ✔✔They represent and work with various insurance companies
having the ability to compare, offer and sell policies from companies they represent
✔✔Captive agent - ✔✔They work only for one insurance company and therefore are
limited to only selling policies for that company
✔✔direct writer sytem - ✔✔What is another name for a captive agent?
✔✔Lloyds of London - ✔✔Market for difficult to insure risks. Not an insurer, but a
society of members who are grouped together to insure risks
✔✔Managing General Agent (MGA) - ✔✔An authorized agent of the primary insurer
that manages all or part of the primary insurer's insurance activities, usually in a specific
geographic area. Have authority to appoint retail agents
✔✔Reciprocals - ✔✔Groups of individuals or organizations, called subscribers, who join
together into an association for the purpose of insuring one another.
✔✔Risk retention group - ✔✔Insurance company that each of the policyholders is also
a stockholder. The members are businesses with related or similar activities, and the
coverage provided is limited to liability insurance.
