CISR AGENCY OPERATIONS EXAM ACTUAL EXAM 200
QUESTIOS AND CORECT DETAILED ANSWERS WITH
RATIONALES (VERIFIED ANSWERS) |AGRADE
Can be defined as a system or set of moral principles or practice - ANSWER: Ethics
7 Factors that can influence an individual's ethics are: - ANSWER: - Friends
- Family
- Society
- Media
- Belief Systems
- Educational Institution
- Legal Restraints
3 Benefits of being ethical - ANSWER: 1. Public Trust / Confidence Gained
2. Government Regulation Avoided
3. Enhanced Credibility Earned
Examples of Government Regulation - ANSWER: - Limitations on how credit scoring is
used in UW
- Trust account fiduciary rules
- Unfair trade practices acts
6 steps to Ethical Decisions making - ANSWER: 1. Define the problem
2. Seek out Resources
3. Brainstorm a list of Potential Solutions
4. Evaluate those Alternatives
5. Make your decision & Implement
6. Evaluate the decision
_____ is behaving in accordance w/ the legal system - following laws, rules, &
policies - ANSWER: Legal Compliance
Legal duties are based on 3 criteria: - ANSWER: 1. Peer Standards
- Requires a person's duties be performed in a manner similar to others in the same
position
2. Oral & Written Agreements (Contracts)
3. Statutes
Are written laws open to little interpretation - ANSWER: Statutes
- ex of following a writing insurance statue is when the laws protect consumers from
unfair trade practices
Actual or Expressed Authority - ANSWER: is expressly given to the agency by the
insurance company as found in the agency contract.
- When used the insurance company is generally responsible to pay for losses
, -Written authority allows the agent to countersign, issue & deliver policies
Implied Authority - ANSWER: The authority of the agent is not specifically expressed
(not in writing), but is still consistent with the agent fully exercising expressed
authority granted by the company
- Contact may not address the agency to use the company logo. but due to implied
authority, it is implied the agency has permission to do so
Apparent Authority - ANSWER: Authority the agent appears to have based on
circumstances surrounding that belief. MISLEADING and cause the customer to
believe authority exists when it does not
- Agent giving a quote who does not have the actual authority
Estoppel - ANSWER: The insurance company is "stopped" from denying the agent's
authority when it has allows the same activity in the past without taking any
corrective actions
- An agency previously exceeded its binding authority serval times, but the insurance
company always issued the policies without notifying the agents. Now a loss occurs
on a new policy, the insurance comp tries to deny but cannot because the agent
used implied authority, for no corrective action has ever been taken in the past.
Insurance comp is estopped from denying that agency's authority
No Authority - ANSWER: If an agency does NOT represent a company (no agreement
in place) there is no authority granted, implied, or apparent
Care Owed to the Insurance Company - ANSWER: 1. Loyalty
2. Good Faith
3. Reasonable Care
4. Contractual Duties
Care Owed to the Customer - ANSWER: 1. Adequate Coverage
- determine the appropriate amount of insurance
2. Proper Coverage
- Understand differences in coverage among what is available
3. Coverage Place in the Best Interest of the Customer
4. Prompt Communication
5. Coverage Place w/ a Financially Sound Insurance Comp
Values Statement - ANSWER: Defines the heart of the organization; "What do we
stand for?"
QUESTIOS AND CORECT DETAILED ANSWERS WITH
RATIONALES (VERIFIED ANSWERS) |AGRADE
Can be defined as a system or set of moral principles or practice - ANSWER: Ethics
7 Factors that can influence an individual's ethics are: - ANSWER: - Friends
- Family
- Society
- Media
- Belief Systems
- Educational Institution
- Legal Restraints
3 Benefits of being ethical - ANSWER: 1. Public Trust / Confidence Gained
2. Government Regulation Avoided
3. Enhanced Credibility Earned
Examples of Government Regulation - ANSWER: - Limitations on how credit scoring is
used in UW
- Trust account fiduciary rules
- Unfair trade practices acts
6 steps to Ethical Decisions making - ANSWER: 1. Define the problem
2. Seek out Resources
3. Brainstorm a list of Potential Solutions
4. Evaluate those Alternatives
5. Make your decision & Implement
6. Evaluate the decision
_____ is behaving in accordance w/ the legal system - following laws, rules, &
policies - ANSWER: Legal Compliance
Legal duties are based on 3 criteria: - ANSWER: 1. Peer Standards
- Requires a person's duties be performed in a manner similar to others in the same
position
2. Oral & Written Agreements (Contracts)
3. Statutes
Are written laws open to little interpretation - ANSWER: Statutes
- ex of following a writing insurance statue is when the laws protect consumers from
unfair trade practices
Actual or Expressed Authority - ANSWER: is expressly given to the agency by the
insurance company as found in the agency contract.
- When used the insurance company is generally responsible to pay for losses
, -Written authority allows the agent to countersign, issue & deliver policies
Implied Authority - ANSWER: The authority of the agent is not specifically expressed
(not in writing), but is still consistent with the agent fully exercising expressed
authority granted by the company
- Contact may not address the agency to use the company logo. but due to implied
authority, it is implied the agency has permission to do so
Apparent Authority - ANSWER: Authority the agent appears to have based on
circumstances surrounding that belief. MISLEADING and cause the customer to
believe authority exists when it does not
- Agent giving a quote who does not have the actual authority
Estoppel - ANSWER: The insurance company is "stopped" from denying the agent's
authority when it has allows the same activity in the past without taking any
corrective actions
- An agency previously exceeded its binding authority serval times, but the insurance
company always issued the policies without notifying the agents. Now a loss occurs
on a new policy, the insurance comp tries to deny but cannot because the agent
used implied authority, for no corrective action has ever been taken in the past.
Insurance comp is estopped from denying that agency's authority
No Authority - ANSWER: If an agency does NOT represent a company (no agreement
in place) there is no authority granted, implied, or apparent
Care Owed to the Insurance Company - ANSWER: 1. Loyalty
2. Good Faith
3. Reasonable Care
4. Contractual Duties
Care Owed to the Customer - ANSWER: 1. Adequate Coverage
- determine the appropriate amount of insurance
2. Proper Coverage
- Understand differences in coverage among what is available
3. Coverage Place in the Best Interest of the Customer
4. Prompt Communication
5. Coverage Place w/ a Financially Sound Insurance Comp
Values Statement - ANSWER: Defines the heart of the organization; "What do we
stand for?"
