Social Science Business Insurance
CISR AGENCY OPERATIONS EXAM GUIDE
2025/ACTUAL EXAM QUESTIONS AND
CORRECT DETAILED ANSWERS |A+ GRADED
||BRAND NEW VERSION!
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Ahip 2025 final AAPC CPB - CHAPTER 2: QUESTIO... VA State Life, Annuit
Teacher 33 terms 35 terms Teacher 64 terms
Pann_Wanjiku Preview Mohamd6056657 Preview muchiris
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Acts on behalf of the customer
Choose matching term
1 Wholesaler 2 Broker
3 Manufacturers' Agent 4 Insurer
Don't know?
a. To be recognized as knowledgeable insurance professionals
within the community
Four benefits of ethical behavior b. To gain public trust and confidence
c. To avoid government regulation
d. To enhance credibility with customers and companies
, Risk misrated to write coverage - Insurer doesn't receive enough
Misrating & Misclassification
premium; Insurer not able to pay losses
Rating a vehicle using wrong class; incorrect protection class;
relying on RC endt; hiding other residents of household; hiding
Common ethical issues
young drivers; underestimating rating for reduced premium;
signing for insured
Require duties to be performed in a manner similar to other in
Peer standards
same position
Law recognizes the duties of the parties to perform and provides
Oral and written agreements
a remedy for non-performance
Statutes Every state has statutes: rebating
Given by the insurance company (Binding authority, Underwriting
Actual or Expressed Authority
approval)
Insurance company is stopped from denying the authority when
Implied Authority it's allowed same activity in the past (allowing bad loss ratio for
last 10 years)
Believed authority. Protects insured from unauthorized acts of
Apparent Authority
agent. (Ins. Co. pay claim, subrogates against agent)
Standard of Care Owed to Remaining faithful to company/agency relationship
Insurers: Loyalty
Standard of Care Owed to Honesty throughout transaction; Acting in best interest of
Insurers: Good Faith insurance co
Standard of Care Owed to Submit only business that meets or exceeds UW requirements
Insurers: Reasonable Care
Standard of Care Owed to Identified in agency agreement; Staying w/in binding authority;
Insurers: Contractual Duties following required time frame
Standard of Care Owed to Determine appropriate amount of coverage; Explain benefits &
Customers: Adequate Coverage advantages; Identify loss exposure
Understand differences among policies; Use tools to assist in
Standard of Care Owed to
identifying exposure to loss; Keep current w/ changes &
Customers: Proper Coverage
innovations
Standard of Care Owed to Best possible terms; Understand differences among policies; Not
Customers: Coverage placed in placing coverage bases only on highest commission
best interest of customer
Standard of Care Owed to Notify customers about changes, exclusions, transactions, claims,
Customers: Prompt cancellations, non-renewals
communication
Standard of Care Owed to Coverage placed with insurer that can pay a claim; Obtain
Customers: Coverage placed knowledge if company is experiencing financial troubles and
with financially sound company move insured
Licensing Each state has established requirements
Pre-Licensing Specific education required before eligible to take license exam
Specific to license; Statutes (laws); Violations lead to fines, lost
CE
license, criminal charges
CISR AGENCY OPERATIONS EXAM GUIDE
2025/ACTUAL EXAM QUESTIONS AND
CORRECT DETAILED ANSWERS |A+ GRADED
||BRAND NEW VERSION!
Save
Students also studied
Flashcard sets Study guides
Ahip 2025 final AAPC CPB - CHAPTER 2: QUESTIO... VA State Life, Annuit
Teacher 33 terms 35 terms Teacher 64 terms
Pann_Wanjiku Preview Mohamd6056657 Preview muchiris
Stretch your brain before your first study session
Learn 1 /7 Study with Learn
Acts on behalf of the customer
Choose matching term
1 Wholesaler 2 Broker
3 Manufacturers' Agent 4 Insurer
Don't know?
a. To be recognized as knowledgeable insurance professionals
within the community
Four benefits of ethical behavior b. To gain public trust and confidence
c. To avoid government regulation
d. To enhance credibility with customers and companies
, Risk misrated to write coverage - Insurer doesn't receive enough
Misrating & Misclassification
premium; Insurer not able to pay losses
Rating a vehicle using wrong class; incorrect protection class;
relying on RC endt; hiding other residents of household; hiding
Common ethical issues
young drivers; underestimating rating for reduced premium;
signing for insured
Require duties to be performed in a manner similar to other in
Peer standards
same position
Law recognizes the duties of the parties to perform and provides
Oral and written agreements
a remedy for non-performance
Statutes Every state has statutes: rebating
Given by the insurance company (Binding authority, Underwriting
Actual or Expressed Authority
approval)
Insurance company is stopped from denying the authority when
Implied Authority it's allowed same activity in the past (allowing bad loss ratio for
last 10 years)
Believed authority. Protects insured from unauthorized acts of
Apparent Authority
agent. (Ins. Co. pay claim, subrogates against agent)
Standard of Care Owed to Remaining faithful to company/agency relationship
Insurers: Loyalty
Standard of Care Owed to Honesty throughout transaction; Acting in best interest of
Insurers: Good Faith insurance co
Standard of Care Owed to Submit only business that meets or exceeds UW requirements
Insurers: Reasonable Care
Standard of Care Owed to Identified in agency agreement; Staying w/in binding authority;
Insurers: Contractual Duties following required time frame
Standard of Care Owed to Determine appropriate amount of coverage; Explain benefits &
Customers: Adequate Coverage advantages; Identify loss exposure
Understand differences among policies; Use tools to assist in
Standard of Care Owed to
identifying exposure to loss; Keep current w/ changes &
Customers: Proper Coverage
innovations
Standard of Care Owed to Best possible terms; Understand differences among policies; Not
Customers: Coverage placed in placing coverage bases only on highest commission
best interest of customer
Standard of Care Owed to Notify customers about changes, exclusions, transactions, claims,
Customers: Prompt cancellations, non-renewals
communication
Standard of Care Owed to Coverage placed with insurer that can pay a claim; Obtain
Customers: Coverage placed knowledge if company is experiencing financial troubles and
with financially sound company move insured
Licensing Each state has established requirements
Pre-Licensing Specific education required before eligible to take license exam
Specific to license; Statutes (laws); Violations lead to fines, lost
CE
license, criminal charges
