CIC AGENCY MANAGEMENT ALL LESSONS ACTUAL EXAM TEST PAPER FULL
QUESTIONS CORRECT RESPONSES
CIC Agency Management ALL Lessons 2026/2027
Final Paper EXAM PREP Questions Questions and
Answers Verified Solutions Latest Update
Question:
Impact of Federal & State Regulations on Agencies.
Answer:
Why do we have regulations? To make sure we keep promises Interstate Commerce Consumer
Protection Viable Insurance Marketplace
Question:
Characteristics of the 5 stages of Agency Growth.
Answer:
(ESSTM) 1. Existence - agency struggle, must be creative to move, basic staff, owner does
everything 2. Survival - Ongoing concern, must have direction to grow, owner heavily involved,
balance revenues & expenses. 3. Success - Profitable, can stay or grow, must be sales oriented to
grow, owner not as involved. 4. Take-Off - Expands quickly, coordination to grow, increase staff,
$=People, Delegation no longer and option 5. Maturity - Developed, tends to be large, focus on $ &
planning
Question:
Types of Company Markets available to agents.
Answer:
Standard Markets Stock - Owned by Stockholders Mutual - Owned by policyholders Direct writers -
exclusive Alternative Markets Excess Surplus MGA's Brokerage SIFs
Question:
Company - Agency Agreement.
, Answer:
Commissions, Ownership, Contingency, Agency Authority, Agency or Direct Bill. How many
companies? Few vs Many? Volume & Volume requirements, Financial Stability, personnel,
support, claims pay
Question:
Company expectations of an agency.
Answer:
Track record of business & sales success management, growth plan, sales culture, assertive,
successful, marketing focus & plan, staff, low loss ratio, high close ration.
Question:
Factors that positively/negatively impact agency value.
Answer:
Profitability, retention ration, commissions, producer compensation, personnel quality, Markets,
E&O etc.
Question:
Income Statement.
Answer:
*Shows the revenues & expenses of the agency over time. Components - Commissions, fee income,
other income, compensation expenses, selling expenses & managing expenses
Question:
SPREAD.
Answer:
*The difference between revenues per employee & compensation per employee. Larger spread =
Higher Productivity (Revenues per employee) - (Compensation per employee) = Spread Spread -
What is left to pay expenses
QUESTIONS CORRECT RESPONSES
CIC Agency Management ALL Lessons 2026/2027
Final Paper EXAM PREP Questions Questions and
Answers Verified Solutions Latest Update
Question:
Impact of Federal & State Regulations on Agencies.
Answer:
Why do we have regulations? To make sure we keep promises Interstate Commerce Consumer
Protection Viable Insurance Marketplace
Question:
Characteristics of the 5 stages of Agency Growth.
Answer:
(ESSTM) 1. Existence - agency struggle, must be creative to move, basic staff, owner does
everything 2. Survival - Ongoing concern, must have direction to grow, owner heavily involved,
balance revenues & expenses. 3. Success - Profitable, can stay or grow, must be sales oriented to
grow, owner not as involved. 4. Take-Off - Expands quickly, coordination to grow, increase staff,
$=People, Delegation no longer and option 5. Maturity - Developed, tends to be large, focus on $ &
planning
Question:
Types of Company Markets available to agents.
Answer:
Standard Markets Stock - Owned by Stockholders Mutual - Owned by policyholders Direct writers -
exclusive Alternative Markets Excess Surplus MGA's Brokerage SIFs
Question:
Company - Agency Agreement.
, Answer:
Commissions, Ownership, Contingency, Agency Authority, Agency or Direct Bill. How many
companies? Few vs Many? Volume & Volume requirements, Financial Stability, personnel,
support, claims pay
Question:
Company expectations of an agency.
Answer:
Track record of business & sales success management, growth plan, sales culture, assertive,
successful, marketing focus & plan, staff, low loss ratio, high close ration.
Question:
Factors that positively/negatively impact agency value.
Answer:
Profitability, retention ration, commissions, producer compensation, personnel quality, Markets,
E&O etc.
Question:
Income Statement.
Answer:
*Shows the revenues & expenses of the agency over time. Components - Commissions, fee income,
other income, compensation expenses, selling expenses & managing expenses
Question:
SPREAD.
Answer:
*The difference between revenues per employee & compensation per employee. Larger spread =
Higher Productivity (Revenues per employee) - (Compensation per employee) = Spread Spread -
What is left to pay expenses
