CIC - Agency Management Exam 2025-2026 most recent version Comprehensive 250 questions and verified answers accurate solutions Already graded A+ Get it 100% correct
3 Types of compensation - CORRECT ANSWER: 1. Entry-Level
- Mid-Level
- Maximum Level
A comparative rating system is - CORRECT ANSWER: a third-party, vendor, or rating program that enables an agency to obtain accurate risk quotes from several carriers
A legal agent is - CORRECT ANSWER: a party authorized to act ethically on behalf of another
A multigenerational and multicultural workforce connects an agency to - CORRECT
ANSWER: the larger world, creating market opportunities
A realistic number for an agency to determine what number of new accounts is realistic -
CORRECT ANSWER: 1. Consider the # of existing accounts
- # of employees
- quality of technology required to support accounts
- Workflows
- Procedures
A successful agency should recruit, hire, manage, and develop good employees by
asking - CORRECT ANSWER: Who - Define the type of person the agency wants to
recruit and retain
- / 4
What - Describe the ideal employees profile
Why - Hiring the right employee makes a huge difference to the success of an agency.
Hire people who embrace the agency culture and who will become leaders within the agency
A SWOT analysis tool - CORRECT ANSWER: is a useful tool for evaluating an agencies strengths, weaknesses, opportunities, and external and internal threats
Actual or Express Authority - CORRECT ANSWER: is plainly granted, either orally or in writing by the insurance company to an agent.
Allows the agent to countersign, issue and deliver policies & binders, cancel policies, collect premiums, and provide customer service
Additional types of agreements an agency may want to consider using - CORRECT
ANSWER: 1. Employee Non-Disclosure and Confidentiality Agreement
- Non-Compete Agreement
- Non-Piracy Agreement
Advantages of External Professional Development - CORRECT ANSWER: 1. Outside
instructors may have greater expertise
- Local agency is unaffected by absence of less-productive employee
- Employee can interact with those seeking the same training
Advantages of Internal Professional Development - CORRECT ANSWER: 1. Fewer
Expenses
- Differentiated Training 2 / 4
- Access to a vast selection of online training
- Inexpensive webinars that require only an internet connection
Agents are expected to by law: - CORRECT ANSWER: 1. notify the client of policy expiration when the agent receives the information
- Investigate the solvency of an insurance company
- Renew a policy or notify the client of non-renewal
An agency can take specific steps like, to increase retention - CORRECT ANSWER: 1.evaluate the potential for increased profit through higher retention
- Identify opportunities to increase retention such as improved services, processes,
- setting reasonable retention goals
etc.
An agency should obtain a survey of compensation within the agency operating area
seeking information like - CORRECT ANSWER: 1. Worker availability
- Employee Benefits
- Working Conditions
- Job Security
An agency situational analysis also includes analysis of: - CORRECT ANSWER:
External Factors:
- competition
- Regulatory Environment
- Economic trends
- Market Conditions
Internal Factors:
- Productivity 3 / 4
- Financials
- Accounts/clients
- Sales and Support
An agency uses its value statement to accomplish several goals - CORRECT ANSWER:
- Communicate the agency's core principles to shape its direction and organizational
goals
- Focus on aspirations and behavioral issues that matter most to the agency's
leadership
- Define the standards of conduct and expectations for all agency members
- Communicate these statements orally, written, and electronic form
An agency's 5 growth stages - CORRECT ANSWER: 1. Start-Up
- Development & Growth
- Success
- Expansion
- Maturity
An agency's mission statement should - CORRECT ANSWER: -provide a clear
statement of an agency's purpose and focus -Identify characteristics that are broadly stated in terms of service, income, and profit -establish clear growth goals serving its key stakeholders, clients, and employees
An agency's vision statement answers - CORRECT ANSWER: Where do we want to
go?
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