CISR Agency Operations Self Quiz 50 Questions with Answers,100% CORRECT

Document Content and Description Below

CISR Agency Operations Self Quiz 50 Questions with Answers Which one of the following best describes actual authority? - CORRECT ANSWER When the agency is expressly given authority in the agency ... contract Which one of the following statements best describes the standard of care an insurance agency owes an insurance company? - CORRECT ANSWER Loyalty, good faith, reasonable care and contractual duties Which one of the following is not one of the four benefits of ethical behavior? - CORRECT ANSWER thical behavior encourages governmental regulation Which one of the following best describes a contract? - CORRECT ANSWER Oral or written agreements between two parties that creates an obligation to do or not do a particular thing Which one of the following statements best describes agency stakeholders? - CORRECT 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 insurance agencies is typically the largest source of income for the insurance agency? - CORRECT ANSWER Commission Which one of the following statements best describes how an agency operates? - CORRECT 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? - CORRECT ANSWER Loss of use Insurance brokers, who act on behalf of the buyer/client, differ from agents in what way? - CORRECT ANSWER Brokers do not have binding authority The best definition of active retention is: - CORRECT ANSWER The customer knows before the loss that he/she is financially responsible for all or part of the loss Which one of the following statements regarding the process of identifying loss exposures is correct? - 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? - CORRECT ANSWER Risk identification, risk analysis, risk control, risk finance, risk administration The primary reason for the regulation of insurance companies is: - CORRECT ANSWER To protect insurance consumers Which one of the following statements regarding alternative markets is correct? - CORRECT ANSWER Agents do not typically have binding authority in alternative markets Which one of the following statements concerning non-admitted insurance companies is correct? - CORRECT ANSWER Non-admitted insurance companies can only be accessed by an excess/surplus lines broker The Managing General Agent (or Agency) can best be described as representing: - CORRECT 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 - CORRECT ANSWER Reinsurance Form of reinsurance in which a contract automatically establishes the terms for reinsuring a class or classes of business. - CORRECT ANSWER Treaty Reinsurance Form of reinsurance using offer and acceptance of individual risks in which, under a contract of reinsurance, the reinsurer retains the faculty accept or reject each risk offered by the ceding company. - CORRECT ANSWER Facultative reinsurance Which is the most important component of face-to-face communication? - CORRECT ANSWER Body Language The four primary communication skill areas are: - CORRECT ANSWER Listening, speaking, writing, and body language Face-to-face non-verbal communication with customers is improved with each of the following, except: - CORRECT ANSWER Maintaining constant direct eye contact Which one of the following does not normally apply regarding the use of social media in an insurance agency? - CORRECT ANSWER Most agencies provide their staff with a personal email address. Two-way communication is best described as: - CORRECT ANSWER Speaking and listening Which one of the following methods could reduce the likelihood of an errors and omissions claim? - CORRECT ANSWER Using standardized letters or memos Which one of the following statements does not describe a purpose of a position guide? - CORRECT ANSWER Used to determine promotions. A formal training plan for sales and service staff of an agency should include strong skill development in which of the three major areas. - CORRECT ANSWER Technical, product knowledge, agency process (The Agency Way) The purpose and benefits of an internal quality control process include all of the following except: - CORRECT ANSWER To determine peer group results. Which one of the following best describes Standards? - CORRECT ANSWER Standards are important as they define what the expected result is for the responsibilities, duties 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? - CORRECT 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: - CORRECT ANSWER Only if the box is marked For personal lines, the guidelines for effective documentation include all but the following: - CORRECT ANSWER Documentation should include helpful editorial comments regarding knowledge that you possess of the insured's lifestyle, etc. Which one of the following statements best describes new business submissions? - CORRECT ANSWER Make sure the application is completely filled out including marking boxes that "trigger" coverage Steps in new account servicing for personal lines include all but the following: - CORRECT ANSWER Sign the application for the insured in order to expedite approval Each of the following are steps in servicing personal lines accounts, except: - CORRECT ANSWER Process the endorsement immediately without verifying accuracy Which one of the following statements about the role of personal underwriting guidelines is incorrect? - CORRECT ANSWER As most underwriting guidelines are negotiable, and reinsurance is readily available, it is not necessary to strictly adhere to most of these guidelines The steps in renewal processing include all but the following: - CORRECT ANSWER Changes in competitors' activities The three options for premium payment are: - CORRECT ANSWER Direct bill, agency bill, and premium finance Select the INCORRECT statement about certificates of insurance. - CORRECT ANSWER A certificate of insurance is a temporary insurance contract Property inspections may result in mandatory or suggested recommendations. Which of the following statements best describes mandatory recommendations? - CORRECT ANSWER In many cases, mandatory recommendations must be satisfied prior to coverage being bound The components of a balance sheet are: - CORRECT ANSWER Assets, liabilities, and equity Which one of the following best describes the profit and loss statement? - CORRECT ANSWER Summarizes the financial results over a period of time The components of the profit and loss statement are: - CORRECT ANSWER Revenues, expenses, and profit or loss If a claimant, rather than the insured, reports a claim, you should: - CORRECT ANSWER Take the claimant's information, but do not confirm any of the insured's information Which of the following is not a part of the claims process? - CORRECT ANSWER The agency accepts or denies coverage The shows various sources of income such as sales, service, consulting, etc. In an insurance agency the sources of income could include commercial lines commission. personal lines commission, life and benefits commission, contingent income, fee income, etc - CORRECT ANSWER Revenues his shows all of the expenses incurred to generate the income. In an insurance agency, expenses could include compensation expenses, business development expenses, operating expenses, etc. - CORRECT ANSWER Expenses This is the difference between income and expenses. Income minus expenses equal profit or loss. When income exceeds expenses, the result is a gross profit. - CORRECT ANSWER Profit or Loss Errors and omissions (E&O) claims brought against agents by carriers (companies) can be triggered by many factors. All of the following are the most common reasons that agents are found guilty of E&O claims, except: - CORRECT ANSWER Lack of adequate staffing An E & O claim stating that the agent did not notify the company that the insured property had become vacant would allege that the agency breached which duty owed to the insurer? - CORRECT ANSWER Failure to notify carrier of material change of risk. [Show More]

Last updated: 1 year ago

Preview 1 out of 5 pages