CISR Agency Operations Study Guide 2026
Question and Answer | 100% Verified
Answers | A+ Verified
• Agency Characteristics. CORRECT ANSWER: Number of
Employees, Locations, Areas of Specialization, AMS used, Local,
Regional, National, International Operations, Use of Service Centers.
• Small Agency. CORRECT ANSWER: Require staff to fill multiple
roles.
• Mid-Sized Agencies. CORRECT ANSWER: Staff may be split
• Large agencies. CORRECT ANSWER: More Specialization in single
lines.
• single or multiple locations. CORRECT 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. CORRECT
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:. CORRECT 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. CORRECT 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. CORRECT 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. CORRECT ANSWER: Commission, Fee Based
Services, Profit-Sharing, Investment Income.
• Commission:. CORRECT 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:. CORRECT ANSWER: In addition to selling
insurance coverage, agencies may offer additional services for which
they may be able to legally charge a fee. Loss control, risk management
and insurance consulting are examples of fee-based services.
• Profit-sharing:. CORRECT ANSWER: This is a bonus that insurance
companies may pay to agencies to reward the agencies profitability and
growth. (Sometimes referred to as a contingency check.)
• Investment Income:. CORRECT ANSWER: Income generated from
the investment of the agencies' assets. An example of investment income
would be interest earned on a bank account.
Question and Answer | 100% Verified
Answers | A+ Verified
• Agency Characteristics. CORRECT ANSWER: Number of
Employees, Locations, Areas of Specialization, AMS used, Local,
Regional, National, International Operations, Use of Service Centers.
• Small Agency. CORRECT ANSWER: Require staff to fill multiple
roles.
• Mid-Sized Agencies. CORRECT ANSWER: Staff may be split
• Large agencies. CORRECT ANSWER: More Specialization in single
lines.
• single or multiple locations. CORRECT 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. CORRECT
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:. CORRECT 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. CORRECT 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. CORRECT 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. CORRECT ANSWER: Commission, Fee Based
Services, Profit-Sharing, Investment Income.
• Commission:. CORRECT 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:. CORRECT ANSWER: In addition to selling
insurance coverage, agencies may offer additional services for which
they may be able to legally charge a fee. Loss control, risk management
and insurance consulting are examples of fee-based services.
• Profit-sharing:. CORRECT ANSWER: This is a bonus that insurance
companies may pay to agencies to reward the agencies profitability and
growth. (Sometimes referred to as a contingency check.)
• Investment Income:. CORRECT ANSWER: Income generated from
the investment of the agencies' assets. An example of investment income
would be interest earned on a bank account.
