CISR Agency Operations Study Guide 2026
Question and Answer | Ultimate Prep Bundle
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• Which one of the following statements best describes the standard of
care an insurance agency owes an insurance company? -✓✓Loyalty,
good faith, reasonable care and contractual duties
• Which one of the following is not one of the four benefits of ethical
behavior? -✓✓thical behavior encourages governmental regulation
• Which one of the following best describes a contract? -✓✓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? -✓✓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? -
✓✓Commission
• Which one of the following statements best describes how an agency
operates? -✓✓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? -✓✓Loss of use
• Insurance brokers, who act on behalf of the buyer/client, differ from
agents in what way? -✓✓Brokers do not have binding authority
, • The best definition of active retention is: -✓✓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? -✓✓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? -✓✓Risk identification, risk analysis, risk control, risk finance,
risk administration
• The primary reason for the regulation of insurance companies is: -
✓✓To protect insurance consumers
• Which one of the following statements regarding alternative markets is
correct? -✓✓Agents do not typically have binding authority in
alternative markets
• Which one of the following statements concerning non-admitted
insurance companies is correct? -✓✓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: -✓✓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 -
✓✓Reinsurance
Question and Answer | Ultimate Prep Bundle
| A+ Verified
• Which one of the following statements best describes the standard of
care an insurance agency owes an insurance company? -✓✓Loyalty,
good faith, reasonable care and contractual duties
• Which one of the following is not one of the four benefits of ethical
behavior? -✓✓thical behavior encourages governmental regulation
• Which one of the following best describes a contract? -✓✓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? -✓✓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? -
✓✓Commission
• Which one of the following statements best describes how an agency
operates? -✓✓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? -✓✓Loss of use
• Insurance brokers, who act on behalf of the buyer/client, differ from
agents in what way? -✓✓Brokers do not have binding authority
, • The best definition of active retention is: -✓✓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? -✓✓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? -✓✓Risk identification, risk analysis, risk control, risk finance,
risk administration
• The primary reason for the regulation of insurance companies is: -
✓✓To protect insurance consumers
• Which one of the following statements regarding alternative markets is
correct? -✓✓Agents do not typically have binding authority in
alternative markets
• Which one of the following statements concerning non-admitted
insurance companies is correct? -✓✓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: -✓✓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 -
✓✓Reinsurance
