CISR AGENCY OPERATIONS EXAM 2023-2024
ACTUAL EXAM 200 QUESTIOS AND CORECT
DETAILED ANSWERS WITH RATIONALES
(VERIFIED ANSWERS) |AGRADE
Which one of the following statements concerning non-admitted insurance companies is
correct? - ....ANSWER...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: -
....ANSWER...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 - ....ANSWER...Reinsurance
Form of reinsurance in which a contract automatically establishes the terms for
reinsuring a class or classes of business. - ....ANSWER...Treaty Reinsurance
Form of reinsurance using offer and acceptance of individual risks in which, under a
contract of reinsurance, the reinsurer retains the faculty accept or reject each risk
offered by the ceding company. - ....ANSWER...Facultative reinsurance
Which is the most important component of face-to-face communication? -
....ANSWER...Body Language
The four primary communication skill areas are: - ....ANSWER...Listening, speaking,
writing, and body language
Face-to-face non-verbal communication with customers is improved with each of the
following, except: - ....ANSWER...Maintaining constant direct eye contact
Which one of the following does not normally apply regarding the use of social media in
an insurance agency? - ....ANSWER...Most agencies provide their staff with a personal
email address.
Two-way communication is best described as: - ....ANSWER...Speaking and listening
Which one of the following methods could reduce the likelihood of an errors and
omissions claim? - ....ANSWER...Using standardized letters or memos
,Which one of the following statements does not describe a purpose of a position guide?
- ....ANSWER...Used to determine promotions.
A formal training plan for sales and service staff of an agency should include strong skill
development in which of the three major areas. - ....ANSWER...Technical, product
knowledge, agency process (The Agency Way)
The purpose and benefits of an internal quality control process include all of the
following except: - ....ANSWER...To determine peer group results.
Which one of the following best describes Standards? - ....ANSWER...Standards are
important as they define what the expected result is for the responsibilities, duties and
function of a position.
While commercial lines underwriting guidelines are very similar to personal lines
underwriting guidelines, there are some differences. Which one of the following is one of
these differences? - ....ANSWER...Additional services such as loss control could be the
deciding factor when selecting the company to place the coverage with
Commercial applications contain boxes that 'trigger' coverage. This coverage is in
place: - ....ANSWER...Only if the box is marked
For personal lines, the guidelines for effective documentation include all but the
following: - ....ANSWER...Documentation should include helpful editorial comments
regarding knowledge that you possess of the insured's lifestyle, etc.
Which one of the following statements best describes new business submissions? -
....ANSWER...Make sure the application is completely filled out including marking boxes
that "trigger" coverage
Steps in new account servicing for personal lines include all but the following: -
....ANSWER...Sign the application for the insured in order to expedite approval
Each of the following are steps in servicing personal lines accounts, except: -
....ANSWER...Process the endorsement immediately without verifying accuracy
Which one of the following statements about the role of personal underwriting guidelines
is incorrect? - ....ANSWER...As most underwriting guidelines are negotiable, and
reinsurance is readily available, it is not necessary to strictly adhere to most of these
guidelines
The steps in renewal processing include all but the following: - ....ANSWER...Changes
in competitors' activities
The three options for premium payment are: - ....ANSWER...Direct bill, agency bill, and
premium finance
, Select the INCORRECT statement about certificates of insurance. - ....ANSWER...A
certificate of insurance is a temporary insurance contract
Property inspections may result in mandatory or suggested recommendations. Which of
the following statements best describes mandatory recommendations? -
....ANSWER...In many cases, mandatory recommendations must be satisfied prior to
coverage being bound
The components of a balance sheet are: - ....ANSWER...Assets, liabilities, and equity
Which one of the following best describes the profit and loss statement? -
....ANSWER...Summarizes the financial results over a period of time
The components of the profit and loss statement are: - ....ANSWER...Revenues,
expenses, and profit or loss
If a claimant, rather than the insured, reports a claim, you should: - ....ANSWER...Take
the claimant's information, but do not confirm any of the insured's information
Which of the following is not a part of the claims process? - ....ANSWER...The agency
accepts or denies coverage
The shows various sources of income such as sales, service, consulting, etc. In an
insurance agency the sources of income could include commercial lines commission.
personal lines commission, life and benefits commission, contingent income, fee
income, etc - ....ANSWER...Revenues
his shows all of the expenses incurred to generate the income. In an insurance agency,
expenses could include compensation expenses, business development expenses,
operating expenses, etc. - ....ANSWER...Expenses
This is the difference between income and expenses. Income minus expenses equal
profit or loss. When income exceeds expenses, the result is a gross profit. -
....ANSWER...Profit or Loss
Errors and omissions (E&O) claims brought against agents by carriers (companies) can
be triggered by many factors. All of the following are the most common reasons that
agents are found guilty of E&O claims, except: - ....ANSWER...Lack of adequate staffing
An E & O claim stating that the agent did not notify the company that the insured
property had become vacant would allege that the agency breached which duty owed to
the insurer? - ....ANSWER...Failure to notify carrier of material change of risk.
Can be defined as a system or set of moral principles or practice - ....ANSWER...Ethics
ACTUAL EXAM 200 QUESTIOS AND CORECT
DETAILED ANSWERS WITH RATIONALES
(VERIFIED ANSWERS) |AGRADE
Which one of the following statements concerning non-admitted insurance companies is
correct? - ....ANSWER...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: -
....ANSWER...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 - ....ANSWER...Reinsurance
Form of reinsurance in which a contract automatically establishes the terms for
reinsuring a class or classes of business. - ....ANSWER...Treaty Reinsurance
Form of reinsurance using offer and acceptance of individual risks in which, under a
contract of reinsurance, the reinsurer retains the faculty accept or reject each risk
offered by the ceding company. - ....ANSWER...Facultative reinsurance
Which is the most important component of face-to-face communication? -
....ANSWER...Body Language
The four primary communication skill areas are: - ....ANSWER...Listening, speaking,
writing, and body language
Face-to-face non-verbal communication with customers is improved with each of the
following, except: - ....ANSWER...Maintaining constant direct eye contact
Which one of the following does not normally apply regarding the use of social media in
an insurance agency? - ....ANSWER...Most agencies provide their staff with a personal
email address.
Two-way communication is best described as: - ....ANSWER...Speaking and listening
Which one of the following methods could reduce the likelihood of an errors and
omissions claim? - ....ANSWER...Using standardized letters or memos
,Which one of the following statements does not describe a purpose of a position guide?
- ....ANSWER...Used to determine promotions.
A formal training plan for sales and service staff of an agency should include strong skill
development in which of the three major areas. - ....ANSWER...Technical, product
knowledge, agency process (The Agency Way)
The purpose and benefits of an internal quality control process include all of the
following except: - ....ANSWER...To determine peer group results.
Which one of the following best describes Standards? - ....ANSWER...Standards are
important as they define what the expected result is for the responsibilities, duties and
function of a position.
While commercial lines underwriting guidelines are very similar to personal lines
underwriting guidelines, there are some differences. Which one of the following is one of
these differences? - ....ANSWER...Additional services such as loss control could be the
deciding factor when selecting the company to place the coverage with
Commercial applications contain boxes that 'trigger' coverage. This coverage is in
place: - ....ANSWER...Only if the box is marked
For personal lines, the guidelines for effective documentation include all but the
following: - ....ANSWER...Documentation should include helpful editorial comments
regarding knowledge that you possess of the insured's lifestyle, etc.
Which one of the following statements best describes new business submissions? -
....ANSWER...Make sure the application is completely filled out including marking boxes
that "trigger" coverage
Steps in new account servicing for personal lines include all but the following: -
....ANSWER...Sign the application for the insured in order to expedite approval
Each of the following are steps in servicing personal lines accounts, except: -
....ANSWER...Process the endorsement immediately without verifying accuracy
Which one of the following statements about the role of personal underwriting guidelines
is incorrect? - ....ANSWER...As most underwriting guidelines are negotiable, and
reinsurance is readily available, it is not necessary to strictly adhere to most of these
guidelines
The steps in renewal processing include all but the following: - ....ANSWER...Changes
in competitors' activities
The three options for premium payment are: - ....ANSWER...Direct bill, agency bill, and
premium finance
, Select the INCORRECT statement about certificates of insurance. - ....ANSWER...A
certificate of insurance is a temporary insurance contract
Property inspections may result in mandatory or suggested recommendations. Which of
the following statements best describes mandatory recommendations? -
....ANSWER...In many cases, mandatory recommendations must be satisfied prior to
coverage being bound
The components of a balance sheet are: - ....ANSWER...Assets, liabilities, and equity
Which one of the following best describes the profit and loss statement? -
....ANSWER...Summarizes the financial results over a period of time
The components of the profit and loss statement are: - ....ANSWER...Revenues,
expenses, and profit or loss
If a claimant, rather than the insured, reports a claim, you should: - ....ANSWER...Take
the claimant's information, but do not confirm any of the insured's information
Which of the following is not a part of the claims process? - ....ANSWER...The agency
accepts or denies coverage
The shows various sources of income such as sales, service, consulting, etc. In an
insurance agency the sources of income could include commercial lines commission.
personal lines commission, life and benefits commission, contingent income, fee
income, etc - ....ANSWER...Revenues
his shows all of the expenses incurred to generate the income. In an insurance agency,
expenses could include compensation expenses, business development expenses,
operating expenses, etc. - ....ANSWER...Expenses
This is the difference between income and expenses. Income minus expenses equal
profit or loss. When income exceeds expenses, the result is a gross profit. -
....ANSWER...Profit or Loss
Errors and omissions (E&O) claims brought against agents by carriers (companies) can
be triggered by many factors. All of the following are the most common reasons that
agents are found guilty of E&O claims, except: - ....ANSWER...Lack of adequate staffing
An E & O claim stating that the agent did not notify the company that the insured
property had become vacant would allege that the agency breached which duty owed to
the insurer? - ....ANSWER...Failure to notify carrier of material change of risk.
Can be defined as a system or set of moral principles or practice - ....ANSWER...Ethics
