CISR AGENCY OPERATIONS EXAM
COMPREHENSIVE EXAMPREP 2026
COMPLETE QUESTIONS AND RATIONALES
⩥ Transfer. Answer: Insurance: transfer of financial consequence to an
insurance company
Non Insurance: when a customer transfers financial consequences to
another by contract or agreement
⩥ Retention. Answer: Active: when a customer knows before the loss
that they are responsible for all or part of the loss
Passive: Whoops! when a client finds out after a loss occurs that they are
responsible
⩥ What is NOT one of the four benefits of ethical behavior?. Answer:
Ethical behavior encourages governmental action
⩥ Describe the standard of care an insurance agency owes to an
insurance company. Answer: loyalty
good faith
reasonable care
contractual duty
,⩥ Describe actual authority. Answer: when the agency is expressly given
the authority in the agency contract
⩥ Describe a contract. Answer: Oral or written agreements between two
parties that creates an obligation to do or not do a particular thing
⩥ What are the four benefits of ethical behavior?. Answer: To be
recognized as a knowledgeable insurance professional within the
community
To gain public trust and confidence
To avoid government regulation
To enhance credibility with customers and companies
⩥ What is the risk management process?. Answer: Risk Identification
Risk analysis
Risk control
Risk finance
Risk administration
⩥ Explain the five steps of risk management. Answer: Risk
identification: identify the customers exposure to loss
Risk analysis: determine frequency or severity of the exposure. How
much could a loss actually cost the customer
, Risk control: understand what methods can be implemented to eliminate
or reduce cost associated with exposure
Risk finance: fund losses by user either internal or external dollars
Risk administration: Implement and monitor the customers risk
management program
⩥ Stakeholders. Answer: People who have the potential to be affected by
any action taken by an organization. Any group or individual who is
affected by the achievements of a firm's objectives
⩥ Risk Control Methods. Answer: Avoid: not always practical
Prevent: reduces frequency
Reduce: reduces severity
Segregation: includes separation or duplication
Transfer: can be physical transfer or contractual transfer
⩥ What is the difference between a broker and an agent/producer?.
Answer: Brokers do not have binding authority
⩥ How would you best describe an agency stakeholder?. Answer: The
primary stakeholders are any group or individual who is affected by the
achievement of a firm's objective
COMPREHENSIVE EXAMPREP 2026
COMPLETE QUESTIONS AND RATIONALES
⩥ Transfer. Answer: Insurance: transfer of financial consequence to an
insurance company
Non Insurance: when a customer transfers financial consequences to
another by contract or agreement
⩥ Retention. Answer: Active: when a customer knows before the loss
that they are responsible for all or part of the loss
Passive: Whoops! when a client finds out after a loss occurs that they are
responsible
⩥ What is NOT one of the four benefits of ethical behavior?. Answer:
Ethical behavior encourages governmental action
⩥ Describe the standard of care an insurance agency owes to an
insurance company. Answer: loyalty
good faith
reasonable care
contractual duty
,⩥ Describe actual authority. Answer: when the agency is expressly given
the authority in the agency contract
⩥ Describe a contract. Answer: Oral or written agreements between two
parties that creates an obligation to do or not do a particular thing
⩥ What are the four benefits of ethical behavior?. Answer: To be
recognized as a knowledgeable insurance professional within the
community
To gain public trust and confidence
To avoid government regulation
To enhance credibility with customers and companies
⩥ What is the risk management process?. Answer: Risk Identification
Risk analysis
Risk control
Risk finance
Risk administration
⩥ Explain the five steps of risk management. Answer: Risk
identification: identify the customers exposure to loss
Risk analysis: determine frequency or severity of the exposure. How
much could a loss actually cost the customer
, Risk control: understand what methods can be implemented to eliminate
or reduce cost associated with exposure
Risk finance: fund losses by user either internal or external dollars
Risk administration: Implement and monitor the customers risk
management program
⩥ Stakeholders. Answer: People who have the potential to be affected by
any action taken by an organization. Any group or individual who is
affected by the achievements of a firm's objectives
⩥ Risk Control Methods. Answer: Avoid: not always practical
Prevent: reduces frequency
Reduce: reduces severity
Segregation: includes separation or duplication
Transfer: can be physical transfer or contractual transfer
⩥ What is the difference between a broker and an agent/producer?.
Answer: Brokers do not have binding authority
⩥ How would you best describe an agency stakeholder?. Answer: The
primary stakeholders are any group or individual who is affected by the
achievement of a firm's objective
