Exam (elaborations)
CIC Agency Management Questions Solved 100 Correct
- Course
- Institution
CIC - Agency Management Questions Solved 100% Correct
[Show more]
Seller
Follow
Academik001
Reviews received
Content preview
CIC - Agency Management Questions Solved100% Correct
1). Types of agencies
Ans: 1. Standard lines P&C
2. Personal Lines only
3. Commercial Lines only
4. Non-StandardAuto
5. Life & Health Agency
6. Combination of the above
2). Banks vs. agencies
Ans: 1. How much will the agency culture change if your agency is acquired by a bank?
2. Banks are governed by very specific federal and state laws that require them to function
in a certain manner.
3. Banks tend to be more formal (in terms of rules, dress code, etc.) than agencies.
4. When acquired, will agency management remain the same? Who will agency
management report to? How much leeway will the bank's agency manager have?
3). Publicly traded vs. privately held
Ans: 1. What role does Wall Street play in the agency culture? Is the focus on long term
or next quarter's results? What role does stock price play?
2. Publicly traded agencies are more focused on near term objectives.
3. Publicly traded agencies are more focused on achieving a higher rate of return (20 -
25%) than on employee satisfaction.
4). Exclusive vs. independent
Ans: 1. Ability / Inability to place business with other carriers. This is determined by the
exclusive carrier and is based on a variety of factors including type of business, location,
etc. Can be frustrating to staff and owners.
2. Agency owners (and employees) get frustrated when exclusive carriers shut down
production (i.e. homeowners in Florida).
3. Exclusive Agents tend to be smaller and less sophisticated in terms of automation and
training.
PaperStoc.com Page 1 of 14
, 5). Single location vs. multi-locations
Ans: Multiple locations require additional systems and procedures to make sure all
employees are treated equally fair.
2. Are employees at one location treated the same as employees in a different location?
3. Is there friendly or unfriendly competition between locations?
6). Large agencies vs. small agencies
Ans: 1. The more employees you have the less crucial each employee becomes when it
comes to satisfying client needs.
2. The more employees you have the more flexibility you have when it comes to vacation,
holidays, etc.
3. The more employees you have the greater the chance you are required to follow certain
Federal / State / Local non-discrimination laws (See HR Section.)
7). Sales vs. service
Ans: 1. Sales focused agencies have a greater emphasis on sales and competition
between employees.
2. Service focused agencies place greater emphasis on satisfying the customer and may
have a tendency to over service them. Is the client profitable? (See Financial Analysis
Case Study).
3. "Bucket shops" focus on as many sales as possible and as little service as possible.
8). Type of entities
Ans: 1. Sole Proprietorship
2. Partnership
3. Limited Liability Company
4. Subchapter S Corporation
5. C Corporation
9). Five stages of organizational growth
Ans: 1. Existence - The owner is the agency and the agency struggles to remain alive.
Staffing is minimal and the agency must be creative to grow. There is little or no job
specialization. The owner does everything!
2. Survival - The agency is an on-going concern and is trying to make a profit by balancing
revenues and expenses. The agency needs to develop specific direction and begin staff
stratification if it wants to survive and thrive.
3. Success - The agency is profitable and can be:
(a) Stable - Renewals, relatives and referrals. Very service-oriented. Needs to focus on
PaperStoc.com Page 2 of 14
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Academik001. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $20.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
75323 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now