pg. 1 CISR AGENCY OPERATIONS EXAM WITH 200 ACTUAL EXAM QUESTI ONS AND CORRECT ANSWERS/ REAL CISR AGENCY OPERATIONS EXAM 2024/2025 LATEST A formal training plan for sales and service staff of an agency should include strong skill development in which of the three major areas. - ANSWER -Technical, product knowledge, agency process (The Agency Way) The Managing General Agent (or Agency) can best be described as representing: - ANSWER -One or more insurance companies A process involving the transfer of risk from one insurer call the ceding (or primary) company, to another called the reinsure - ANSWER -Rein surance Form of reinsurance in which a contract automatically establishes the terms for reinsuring a class or classes of business. - ANSWER -Treaty Reinsurance Form of reinsurance using offer and acceptance of individual risks in which, under a contract o f reinsurance, the reinsurer retains the faculty accept or reject each risk offered by the ceding company. - ANSWER -Facultative reinsurance Which is the most important component of face -to-face communication? - ANSWER -Body Language The four primary commu nication skill areas are: - ANSWER -Listening, speaking, writing, and body language pg. 2 Face -to-face non -verbal communication with customers is improved with each of the following, except: - ANSWER -Maintaining constant direct eye contact Which one of the foll owing does not normally apply regarding the use of social media in an insurance agency? - ANSWER -Most agencies provide their staff with a personal email address. Two-way communication is best described as: - ANSWER -Speaking and listening The purpose and benefits of an internal quality control process include all of the following except: - ANSWER -To determine peer group results. Which one of the following best describes Standards? - ANSWER -Standards are important as they define what the expected result is for the responsibilities, duti es and function of a position. While commercial lines underwriting guidelines are very similar to personal lines underwriting guidelines, there are some differences. Which one of the following is one of these differences? - ANSWER -Additional services such as loss control could be the deciding factor when selecting the company to place the coverage with Commercial applications contain boxes that 'trigger' coverage. This coverage is in place: - ANSWER -Only if the box is marked Which one of the following best describes actual authority? - ANSWER -When the agency is expressly given authority in the agency contract pg. 3 Which one of the following statements best describes the standard of care an insurance agency owes an insurance company? - ANSWER -Loyalty, good faith, reasonable care and contractual duties Which one of the following is not one of the fou r benefits of ethical behavior? - ANSWER -ethical behavior encourages governmental regulation Which one of the following best describes a contract? - ANSWER -Oral or written agreements between two parties that creates an obligation to do or not do a particu lar thing Which one of the following statements best describes agency stakeholders? - ANSWER -The primary stakeholders are any group or individual who is affected by the achievement of a firm's objective Which one of the following sources of revenue for i nsurance agencies is typically the largest source of income for the insurance agency? - ANSWER -Commission Which one of the following statements best describes how an agency operates? - ANSWER -A larger number of locations may mean that some features of the agency be centralized Which one of the following is not one of the four major classes of exposure to loss? - ANSWER -Loss of use Insurance brokers, who act on behalf of the buyer/client, differ from agents in what way? - ANSWER -Brokers do not have bindin g authority The best definition of active retention is: - ANSWER -The customer knows before the loss that he/she is financially responsible for all or part of the loss pg. 4 Which one of the following statements regarding the process of identifying loss exposur es is correct? - ANSWER -A document review of the policy is not the best method because it shows the limits, but not the risks Which one of the following best describes the risk management process? - ANSWER -Risk identification, risk analysis, risk control, risk finance, risk administration The primary reason for the regulation of insurance companies is: - ANSWER -To protect insurance consumers Which one of the following statements regarding alternative markets is correct? - ANSWER -Agents do not typically h ave binding authority in alternative markets Which one of the following statements concerning non -admitted insurance companies is correct? - ANSWER -Non-admitted insurance companies can only be accessed by an excess/surplus lines broker Which one of the following methods could reduce the likelihood of an errors and omissions claim? - ANSWER -Using standardized letters or memos Which one of the following statements does not describe a purpose of a position guide? - ANSWER -Used to determine promotions. For personal lines, the guidelines for effective documentation include all but the following: - ANSWER -Documentation should include helpful editorial comments regarding knowledge that you possess of the insured's lifestyle, etc.
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