CIC AGENCY MANAGEMENT
CERTIFICATION PAPER 2026 FULL
SOLUTION GRADED A+
● Small Agency. Answer: Require staff to fill multiple roles.
● Mid-Sized Agencies. Answer: Staff may be split
● Large agencies. Answer: More Specialization in single lines.
● single or multiple locations. 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. 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:. 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. 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. 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. Answer: Commission, Fee Based Services,
Profit-Sharing, Investment Income.
● Commission:. 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:. Answer: In addition to selling insurance
coverage, agencies may offer additional services for which they may be
CERTIFICATION PAPER 2026 FULL
SOLUTION GRADED A+
● Small Agency. Answer: Require staff to fill multiple roles.
● Mid-Sized Agencies. Answer: Staff may be split
● Large agencies. Answer: More Specialization in single lines.
● single or multiple locations. 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. 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:. 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. 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. 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. Answer: Commission, Fee Based Services,
Profit-Sharing, Investment Income.
● Commission:. 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:. Answer: In addition to selling insurance
coverage, agencies may offer additional services for which they may be
