CIC Agency Management - All Lessons Questions with Correct Answers Explain the Organizational Structures available to Agencies - Correct Answer Sales vs. Service Oriented Large Agencies vs. Small Agencies Publicly Traded vs. Privately Held Explain the Federal and State Regulations on Agencies - Correct Answer Licensing Regulations by State Regulators protect the consumer by making a viable insurance marketplace and monitoring interstate commerce Five Stages of Agency Growth - Correct Answer 1 - Existence - Owner does everything, must be creative to survive
- - Survival - management heavily involved, needs specific direction to grow, trying to make a profit
- - Success - Agency is profitable, stable renewals, service oriented
- - Take Off - careful coordination required to grow, increased staffing needs
- - Maturity - collaboration/integrity, strategic goals, decentralized
Describe how, when and why Agencies move from one Agency Growth Stage to the next - Correct Answer Agency Owner must make all pieces of the puzzle fit together Agency Organization Financials HR Productivity and Effectiveness Sales/Service etc. 1 / 2
Compare the various types of Markets available to Insurance Agencies - Correct Answer Standard Markets - Stock Companies, Mutual Companies, Direct Writers Excess/Surplus Lines, MGAs, Self Insurance Funds, Captive Arrangements Describe the Carrier expectations of an Agency - Correct Answer Proven Record of Sales/Business Success Competent Management Identifiable Sales Culture Professional Service Staff Low Loss Ratios, High Closing Costs Identify the Important elements of a Company-Agency Agreement and Considerations when selecting a Carrier to represent - Correct Answer Agency Contracts -Commission Structure -Ownership of Business -Billing -Contingencies/Profit Sharing Selecting a Carrier -financial stability -personnel -products -Company Support Describe the Factors positively or negatively impacting Agency Value - Correct Answer Agency Profitability Retention Ratio Quality of Personnel Public Image Company Markets
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