CISR Agency Operations Study Guide 2026
Question and Answer | Complete Revision
Pack | Grade A+
• Account Rounding -✓✓Selling new coverage to an existing customer
• Admitted Company -✓✓An insurance company operating within the
standard market; licensed by the state with forms and rates regulated;
financial condition is monitored by the insurance department of the state
in which they are licensed or domiciled
• Agency Billed Policies -✓✓Those policies billed by the insurance
agency; this makes the agency responsible for collecting the premium
for new business, renewals, and endorsements and then submitting the
net premium to the insurance company
• Assets -✓✓What is owned and what has accumulated; assets could
include cash, accounts receivables, investments, buildings, business
property, inventory, and so on.
• Automated Workflow -✓✓A series of tasks created automatically
when a specific event occurs
• Balance Sheet -✓✓A "snapshot" of the financial condition of the
individual or organization on the date it was created; it shows details on
what is owned (assets) and what is owed (liabilities)
• Brand -✓✓A summary of the agency's values, vision, and mission
statements expressed in both the marketplace and community, helping to
position its products and services and communicate its image
,• Captive Agent -✓✓Also known as an exclusive agent; an agent who
works for one insurance company, and therefore is limited to only
selling policies for that company, or for a group of companies under
common ownership or control
• Captive Insurance Company -✓✓A company owned and controlled by
their insureds; typically providing coverage for property and casualty
exposures; may be formed for a single entity (parent captive) or by
multiple entities (group captive)
• Ceding Company -✓✓The primary company that transfers part of its
liability to another company, called a reinsurer
• Certificate of Insurance -✓✓A way to notify an interested party that
insurance is in place; it is not a contract or a legal document
• Claims Log -✓✓An agency's record of claims
• Client Focused -✓✓Technology and automation are fully
implemented allowing more time to focus on the customer and achieve
increased productivity
• Communication -✓✓The activity of conveying information between
two or more individuals; an exchange of information through verbal
communication like speaking or writing, or non- verbal communication
such as listening, visual media, or behavioral cues
• Contract -✓✓An agreement between two or more parties which
creates an obligation to do or to not do something
• Cross-selling -✓✓Selling new lines of insurance to others who have a
business or personal relationship with an existing customer
,• Culture -✓✓The behaviors and attitudes of the organization and its
employees
• Direct Billed Policies -✓✓Those policies which the insurance
company is responsible for communicating directly with the client
regarding premium billing, late notices, and notices of cancellation, etc.
• Endorsements -✓✓Changes to a policy, such as additional coverages
• Equity -✓✓The difference between assets and liabilities; if all the
assets were sold and all the liabilities paid, the equity would be the
remaining money or what is left
• Estoppel -✓✓The insurance company is "stopped" from denying the
agent's authority when it has allowed that same activity in the past
without taking any corrective action
• Ethics -✓✓A system or set of moral principles or practice
• Evidence of Property Insurance Form -✓✓Designed by ACORD, this
is another way to notify an interested party that insurance is in place;
does not confer extended rights or privileges, and does not amend,
extend, or alter the coverage or insuring terms provided by the policy
• Excess and Surplus Lines Broker -✓✓An agent who is licensed by the
state to sell property and casualty insurance through a non-admitted
insurer
• Expenses -✓✓All expenses incurred to generate income; in an
insurance agency, expenses could include compensation expenses,
business development expenses, operating expenses, etc.
, • Exposure -✓✓A situation, practice, or condition that may lead to an
insured's susceptibility to adverse financial consequences or loss
• Facultative Reinsurance -✓✓A form of reinsurance that uses offer and
acceptance of individual risks in which, under a contract of reinsurance,
the reinsurer retains its faculty (the ability) to accept or reject each risk
offered by the ceding company
• FAIR Plan -✓✓Fair Access to Insurance Requirements Plan; makes
fire insurance available to those who are unable to obtain it through
other markets
• Federal Crop Insurance Corporation (FCIC) -✓✓Improves the
economic stability of agriculture through a sound system of crop
insurance; it also provides the means for the research and experience
necessary in devising and establishing such insurance
• Fiduciary -✓✓One who must exercise a high standard of care in
managing another's property or money
• Government Programs and Pools -✓✓A means of handling risks
admitted companies will not write, either because those risks fail to meet
the underwriting criteria or because the exposure to loss is catastrophic
in nature, such as flood or earthquake
• Guaranty Fund -✓✓A fund established in some U.S. states to protect
business written and will step in to make payments on claims as
necessary
• independent Agent and Independent Agency System -✓✓Agents
represent and work with various insurance companies and have the
ability to compare, offer, and sell policies and services from the multiple
companies they represent
Question and Answer | Complete Revision
Pack | Grade A+
• Account Rounding -✓✓Selling new coverage to an existing customer
• Admitted Company -✓✓An insurance company operating within the
standard market; licensed by the state with forms and rates regulated;
financial condition is monitored by the insurance department of the state
in which they are licensed or domiciled
• Agency Billed Policies -✓✓Those policies billed by the insurance
agency; this makes the agency responsible for collecting the premium
for new business, renewals, and endorsements and then submitting the
net premium to the insurance company
• Assets -✓✓What is owned and what has accumulated; assets could
include cash, accounts receivables, investments, buildings, business
property, inventory, and so on.
• Automated Workflow -✓✓A series of tasks created automatically
when a specific event occurs
• Balance Sheet -✓✓A "snapshot" of the financial condition of the
individual or organization on the date it was created; it shows details on
what is owned (assets) and what is owed (liabilities)
• Brand -✓✓A summary of the agency's values, vision, and mission
statements expressed in both the marketplace and community, helping to
position its products and services and communicate its image
,• Captive Agent -✓✓Also known as an exclusive agent; an agent who
works for one insurance company, and therefore is limited to only
selling policies for that company, or for a group of companies under
common ownership or control
• Captive Insurance Company -✓✓A company owned and controlled by
their insureds; typically providing coverage for property and casualty
exposures; may be formed for a single entity (parent captive) or by
multiple entities (group captive)
• Ceding Company -✓✓The primary company that transfers part of its
liability to another company, called a reinsurer
• Certificate of Insurance -✓✓A way to notify an interested party that
insurance is in place; it is not a contract or a legal document
• Claims Log -✓✓An agency's record of claims
• Client Focused -✓✓Technology and automation are fully
implemented allowing more time to focus on the customer and achieve
increased productivity
• Communication -✓✓The activity of conveying information between
two or more individuals; an exchange of information through verbal
communication like speaking or writing, or non- verbal communication
such as listening, visual media, or behavioral cues
• Contract -✓✓An agreement between two or more parties which
creates an obligation to do or to not do something
• Cross-selling -✓✓Selling new lines of insurance to others who have a
business or personal relationship with an existing customer
,• Culture -✓✓The behaviors and attitudes of the organization and its
employees
• Direct Billed Policies -✓✓Those policies which the insurance
company is responsible for communicating directly with the client
regarding premium billing, late notices, and notices of cancellation, etc.
• Endorsements -✓✓Changes to a policy, such as additional coverages
• Equity -✓✓The difference between assets and liabilities; if all the
assets were sold and all the liabilities paid, the equity would be the
remaining money or what is left
• Estoppel -✓✓The insurance company is "stopped" from denying the
agent's authority when it has allowed that same activity in the past
without taking any corrective action
• Ethics -✓✓A system or set of moral principles or practice
• Evidence of Property Insurance Form -✓✓Designed by ACORD, this
is another way to notify an interested party that insurance is in place;
does not confer extended rights or privileges, and does not amend,
extend, or alter the coverage or insuring terms provided by the policy
• Excess and Surplus Lines Broker -✓✓An agent who is licensed by the
state to sell property and casualty insurance through a non-admitted
insurer
• Expenses -✓✓All expenses incurred to generate income; in an
insurance agency, expenses could include compensation expenses,
business development expenses, operating expenses, etc.
, • Exposure -✓✓A situation, practice, or condition that may lead to an
insured's susceptibility to adverse financial consequences or loss
• Facultative Reinsurance -✓✓A form of reinsurance that uses offer and
acceptance of individual risks in which, under a contract of reinsurance,
the reinsurer retains its faculty (the ability) to accept or reject each risk
offered by the ceding company
• FAIR Plan -✓✓Fair Access to Insurance Requirements Plan; makes
fire insurance available to those who are unable to obtain it through
other markets
• Federal Crop Insurance Corporation (FCIC) -✓✓Improves the
economic stability of agriculture through a sound system of crop
insurance; it also provides the means for the research and experience
necessary in devising and establishing such insurance
• Fiduciary -✓✓One who must exercise a high standard of care in
managing another's property or money
• Government Programs and Pools -✓✓A means of handling risks
admitted companies will not write, either because those risks fail to meet
the underwriting criteria or because the exposure to loss is catastrophic
in nature, such as flood or earthquake
• Guaranty Fund -✓✓A fund established in some U.S. states to protect
business written and will step in to make payments on claims as
necessary
• independent Agent and Independent Agency System -✓✓Agents
represent and work with various insurance companies and have the
ability to compare, offer, and sell policies and services from the multiple
companies they represent
