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CIC Agency Management Final Exam /CIC Agency Management Practice Exam Newest 2025/2026 Complete 400+ Questions And Correct Answers |Already Graded A+||Brand New Version!
what are different resources that can be used to evaluate a companies financial stability - ANSWER-1. Rating services
- Reinsurance
- Claims paying ability
4. NAIC
- investments
- Agency E&O coverage
what is the first thing that an insurance company wants to know about an agency - ANSWER-your brand and reputation
Elements of an Agency-company contract: Commission schedule -
ANSWER-some insurance companies offer higher levels of commission for higher performing agencies
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Elements of an Agency-company contract: ownership of business -
ANSWER-Typically an agency owns the business.
in what cases does an agency not own the business - ANSWER- Exclusive agencies such as allstate and state farm. an insurance company owns that business
Elements of an Agency-company contract: contingency/ profit sharing -
ANSWER-compare contracts between companies
Elements of an Agency-company contract: Agency authority -
ANSWER-With the agency properly licensed, it can bind and execute coverage
Elements of an Agency-company contract: contract termination terms -
ANSWER-The insurance company identifies the limitations of an agreement, meaning the kinds of actions that can lead to termination and whether rehabilitation is an option
What type of issues can agency authority lead to - ANSWER-bottleneck issues
Elements of an Agency-company contract: Agency and direct bill
responsibility - ANSWER-the agency agrees to submit all applications promptly and remit initial premium in gross 2 / 4
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Elements of an Agency-company contract: collection of premiums -
ANSWER-accounts of money shall be handles in accordance with the designated accounting method in agreement
Elements of an Agency-company contract: Notice of contract changes -
ANSWER-Contracts are non-assignable. If a contracting agency is sold, the new owner must request a new contract
what are the 5 stages of Agency growth - ANSWER-1. Start up
- Development and growth
- success
- expansion
- maturity
Describe the first stage of agency growth - ANSWER-Start up
Initially, an agency must exist in a fragile state, struggling to survive.The owner or management team handles everything, and because the agency is only beginning to establish its client base, production and service are unstable
Describe the second stage of agency growth - ANSWER-Development and Growth 3 / 4
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An agency increased numbers of clients/ accounts and makes effort to balance revenue and expenses
focus inward. teambuilding, recruitment, education. Thinking about where to delegate
what are activities an agency may use to push itself out of the startup phase - ANSWER-advertising, marketing, networking, niche down
describe the third stage of agency growth - ANSWER-Success
Youre now more profitable and a well oiled machine.
Owner or manager has delegated sales and service activities.
May become interested in merger and acquisitions
may create a leadership team
may choose to become either sales or service oriented
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