CISR AGENCY OPERATIONS QUIZ
QUESTIONS AND ANSWERS
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
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.
Which one of the following best describes actual authority? - Answer- When the agency
is expressly given authority in the agency contract
Which one of the following statements best describes the standard of care an insurance
agency owes an insurance company? - Answer- Loyalty, good faith, reasonable care
and contractual duties
QUESTIONS AND ANSWERS
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
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.
Which one of the following best describes actual authority? - Answer- When the agency
is expressly given authority in the agency contract
Which one of the following statements best describes the standard of care an insurance
agency owes an insurance company? - Answer- Loyalty, good faith, reasonable care
and contractual duties
