CISR Agency Operations 45 Questions with Answers,100 CORRECT
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CISR Agency Operations
Institution
CISR Agency Operations
CISR Agency Operations 45 Questions with Answers
Agency Characteristics - CORRECT ANSWER Number of Employees, Locations, Areas of Specialization, AMS used, Local, Regional, National, International Operations, Use of Service Centers.
Small Agency - CORRECT ANSWER Require staff to fill multip...
CISR Agency Operations 45 Questions with Answers
Agency Characteristics - CORRECT ANSWER Number of Employees, Locations, Areas of Specialization, AMS used, Local, Regional, National, International Operations, Use of Service Centers.
Small Agency - CORRECT ANSWER Require staff to fill multiple roles.
Mid-Sized Agencies - CORRECT ANSWER Staff may be split
Large agencies - CORRECT ANSWER More Specialization in single lines.
single or multiple locations - CORRECT ANSWER The number of locations will affect how an agency communicates and informs. It may also mean that some functions of the agency may be centralized.
Local, regional, national or international operation - CORRECT ANSWER As with the number of locations, where an agency conducts business affects how an agency communicates and informs. Understanding cultural differences and the local economy becomes a critical factor in the operations of an international agency.
Areas of Specialization: - CORRECT ANSWER Specialization may require all employees to have a higher level of training and skills in the type or types of business specialized in. The agency management system may require customization to meet the unique needs of the areas specialized in.
Use of service centers - CORRECT ANSWER Some agencies have transferred the servicing of accounts from their agencies to their insurance carriers by contracting
with a service center or customer service unit, leaving the agencies staff available for sales. Other agencies continue to provide customer service to their customers at the agency level. Service Centers will be discussed in detail later. Agency management system used - CORRECT ANSWER Since agency management
systems differ in their capabilities, the system an agency has will affect its every day operations including how it provides customer service, what type of marketing material it can generate, the reports provided, and the accounting or financial reports available.
Sources of Revenue - CORRECT ANSWER Commission, Fee Based Services, Profit-
Sharing, Investment Income.
Commission: - CORRECT ANSWER This is typically the largest source of income and is the percentage of the premium that the agency earns from the selling and the renewing of insurance including personal lines, commercial lines, life, health and disability, and employee benefits
Fee based services: - CORRECT ANSWER In addition to selling insurance coverage, agencies may offer additional services for which they may be able to legally charge a fee. Loss control, risk management and insurance consulting are examples of fee-based services.
Profit-sharing: - CORRECT ANSWER This is a bonus that insurance companies may pay to agencies to reward the agencies profitability and growth. (Sometimes referred to as a contingency check.)
Investment Income: - CORRECT ANSWER Income generated from the investment of the agencies' assets. An example of investment income would be interest earned on a bank account.
Sales Staff - CORRECT ANSWER The sales staff is comprised of agents (referred to as producers in some jurisdictions) and/or brokers with the responsibility to identify prospects, makes sales calls, present solutions, and secure the buying decision.
Broker - CORRECT ANSWER License: Must hold a broker's license issued by the department of insurance Binding Authority: Does not have binding authority Degree of Loyalty: Acts on behalf of, and hold highest degree of loyalty to the customer
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