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CIC INSURANCE COMPANY OPERATIONS EXAM AND PRACTICE
EXAM NEWEST 2025/2026 ACTUAL EXAM COMPLETE 300
QUESTIONS AND CORRECT DETAILED ANSWERS (VERIFIED
ANSWERS) |ALREADY GRADED A+
Artificial intelligence - answer-is defined as the theory and development of
computer systems able to perform tasks that normally require human
intelligence, such as visual perception, speech recognition, decision making,
and translation between languages
Predictive analytics - answer-encompass a variety of statistical techniques,
including data mining, modeling, and machine learning that analyze current
and historical facts to make assessments about future or otherwise unknown
events
Telematics - answer-is a tool that enables granular examination of personal
lines accounts, letting underwriters zero in on individual risks. Includes
vehicle tracking devices and devices in home to provide real-time information
For each of the following sources if info, indicate whether they are
predominately used in commercial lines or personal lines
1. Clue reports
2. Premium audits
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3. Detailed financial statements
4. Permit data on home construction and repair
5. Tools such as best hazard index. Fc&s, and naics codes - answer-1.
Personal
2. Commercial
3. Commercial
4. Personal
5. Commercial
Specific criteria used to structure an underwriting department - answer-
company size, geographic territory, account types, structural evolution
Indicate with a yes or no which of the following entities may be granted
underwriting authority
1. Policyholders
2. Independent agency personnel
3. Exclusive, direct, captive agents
4. Marketing representatives
5. Policyholder's legal counsel
6. Managing general agents mga
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7. Risk specialist/ loss control specialist - answer-1. No
2. Yes
3. Yes
4. Yes
5. No
6. Yes
7. Yes
True or false: underwriters employed by small insurance companies are
typically generalists out of necessity - answer-true
True or false: large insurance companies may have luxury of designating
underwriters as specialists in their various market segments and
geographical territories - answer-true
True or false: geographical territory has no influence on the types of
experience and expertise required within an underwriting department -
answer-false
True or false: underwriting of commercial lines is the same whether it be
small commercial, middle market, or large commercial accounts - answer-
false
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True or false: as a company grows and expands, the underwriting
department needs to change - answer-true
Does the following influence the insurance market cycle: desire for top line
revenue growth - answer-yes
Does the following influence the insurance market cycle: focus on bottom
line profits - answer-yes
Does the following influence the insurance market cycle: success or failure
of peer companies within the industry - answer-yes
Does the following influence the insurance market cycle: catastrophic losses
- answer-yes
Does the following influence the insurance market cycle: reinsurance
availability - answer-yes
Does the following influence the insurance market cycle: economic
influences such as interest rates, inflation, and stock markets trends -
answer-yes
CIC INSURANCE COMPANY OPERATIONS EXAM AND PRACTICE
EXAM NEWEST 2025/2026 ACTUAL EXAM COMPLETE 300
QUESTIONS AND CORRECT DETAILED ANSWERS (VERIFIED
ANSWERS) |ALREADY GRADED A+
Artificial intelligence - answer-is defined as the theory and development of
computer systems able to perform tasks that normally require human
intelligence, such as visual perception, speech recognition, decision making,
and translation between languages
Predictive analytics - answer-encompass a variety of statistical techniques,
including data mining, modeling, and machine learning that analyze current
and historical facts to make assessments about future or otherwise unknown
events
Telematics - answer-is a tool that enables granular examination of personal
lines accounts, letting underwriters zero in on individual risks. Includes
vehicle tracking devices and devices in home to provide real-time information
For each of the following sources if info, indicate whether they are
predominately used in commercial lines or personal lines
1. Clue reports
2. Premium audits
,2|Page
3. Detailed financial statements
4. Permit data on home construction and repair
5. Tools such as best hazard index. Fc&s, and naics codes - answer-1.
Personal
2. Commercial
3. Commercial
4. Personal
5. Commercial
Specific criteria used to structure an underwriting department - answer-
company size, geographic territory, account types, structural evolution
Indicate with a yes or no which of the following entities may be granted
underwriting authority
1. Policyholders
2. Independent agency personnel
3. Exclusive, direct, captive agents
4. Marketing representatives
5. Policyholder's legal counsel
6. Managing general agents mga
,3|Page
7. Risk specialist/ loss control specialist - answer-1. No
2. Yes
3. Yes
4. Yes
5. No
6. Yes
7. Yes
True or false: underwriters employed by small insurance companies are
typically generalists out of necessity - answer-true
True or false: large insurance companies may have luxury of designating
underwriters as specialists in their various market segments and
geographical territories - answer-true
True or false: geographical territory has no influence on the types of
experience and expertise required within an underwriting department -
answer-false
True or false: underwriting of commercial lines is the same whether it be
small commercial, middle market, or large commercial accounts - answer-
false
, 4|Page
True or false: as a company grows and expands, the underwriting
department needs to change - answer-true
Does the following influence the insurance market cycle: desire for top line
revenue growth - answer-yes
Does the following influence the insurance market cycle: focus on bottom
line profits - answer-yes
Does the following influence the insurance market cycle: success or failure
of peer companies within the industry - answer-yes
Does the following influence the insurance market cycle: catastrophic losses
- answer-yes
Does the following influence the insurance market cycle: reinsurance
availability - answer-yes
Does the following influence the insurance market cycle: economic
influences such as interest rates, inflation, and stock markets trends -
answer-yes
