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What are ethics? What are the four benefits of ethical behavior? What are some common ethical issues confronted by insurance professionals? What are legal duties based on? Define peer standards. Define oral or written agreements. Define statutes. Define actual authority. Define implied authority. Define apparent authority. Wi Explain the difference between an agent and a broker. What is a Customer Service Rep? an agent acts on behalf of the insurance company; a broker acts on behalf of the buyer/customer, many of the responsibilities are identical except a broker does not usually have binding authority they may also be referred to as a Customer Service Agent (CSA), Account Rep, Account Executive, or Account Manager; responsible for providing information, advice, and service to customers during and after the insurance transaction, responsible for the day-to-day operation of an agency, responsibilities of this position may also include sales such as cross- selling and account rounding, many of the responsibilities could be con- sidered "transacting insurance"; therefore, many states require this person to be licensed as an agent accounting, What are other positions in an administration/management, agency? claims, loss control, risk management . . risk identification, risk analysis, risk What is the 5-step risk control, risk finance, risk management process? administration interview:ask the right questions to the right person, listen to their responses checklist, survey, or questionnaire: make sure that it is Identify and describe the specific to your geographic region methods used to identify and to the demographics of the exposure to loss. agency's customersphysical inspection:look for exposuresactivity analysis:volunteer, travel, hobbies, etc. advertising/website:what loss prevention- reduce the frequency of a loss occurring (e.g. installing an alarm system) What is active retention? What is passive retention? What is a stakeholder? Identity potential stakeholders of an insurance agency. How are insurance companies regulated? when the customer knows before the loss that they are financially responsible for all or some of the loss when the customer finds out after the loss that they are financially responsible for the loss people who have a potential to be affected by any action taken by an organization or any group or individual who is affected by achievement of a firm's objectives board of directors, managers and employees, customers, insurers, vendors, government, industry associations by the states or jurisdiction in which they do business How are insurance companies formed? Define an admitted insurance company. Define a non-admitted insurance company. Explain the characteristics of an excess and surplus lines agent/broker. stock companies are owned by stockholders with the objective of making a profit for their stockholders; mutual companies are owned by policyholders with the objective of providing insurance at or near the actual cost of doing business one that is authorized and licensed to do business in the state or jursidiction one that is not authorized or licensed to do business in the state or jurisdiction; also referred to as surplus lines. (in most states, coverage cannot be written with this company unless a due diligence effort has been made to place coverage in the admitted market) What is facultative reinsurance? What is the importance of reinsurance to the agency? known as a market for difficult to insure risks as well as the unique or unusual agreement; the reinsurer agrees to accept all business qualifying under the agreement each exposure that the ceding company wants to reinsure is offered to the reinsurer on an individual basis; it is individually underwritten and individually priced the treaty an insurance company has with its reinsurer is a factor that must be considered when an underwriter is evaluating a risk for acceptance and pricing; personal lines can be affected by the limitations; commercial lines can be affected by both coverage limitations and pricing What is Lloyd's of London? What are excess and surplus lines? What are managing general agent? What is the purpose of government insurance programs/pools? risk; not an insurance company but an insurance market comprised of members wholesale intermediary for the benefit of retail agents who place excess and surplus insurance directly for own customers wholesale intermediary or represents one or more insurer, authority to appoint retail agents within a specific geographical area the private insurance market may avoid insuring risks that either fail to meet the insurance company's underwriting criteria and/or are catastrophic in nature; in response, the government may establish insurance programs or insurance pools as a way to make insurance available to individuals in these situations What is the 3-step process for proofing written communication? What are the components of a job description? What is the importance of a job description? What are the benefits of having written systems and produces? content, grammar, and appearance identify reason and objective of the position, identify and describe the level of authority granted, describes responsibilities, duties, and functions of the position, outlines performance evaluation standards defines what is the expected result for the responsibilities, duties, and functions of the position; to measure the performance compared to the expected result; leads to improved performance and productivity for both the employee and the agency uniform way for work to be performed, training tool for new employees, reference tool for all employees, reinforces quality of works by removing uncertainty about how to accomplish what needs to be What are the four phases of technology? What is manual transition technology? What is process focused technology? What is service focused technology? What is client focused technology? What are the characteristics of a formal training plan/ TAAL done, E&O loss prevents, key for defending E&O claims manual transition, process focused, service focused, client focused the agency has minimal reliance on technology and automation the agency is beginning to utilize technology to enhance service and allow staff to work more efficiently the agency is now at the stage where the use of technology and automation is essential and is the primary source of information and documentation technology and automation is fully implemented allowing more time to focus on the customer and achieve increased productivity What are guidelines for effective documentation? Explain the steps in account servicing for new business and policy services. insured sign the application even if the signature is not required - the agency should never sign the insured's name documentation should be made in the agency management system according to the agency's policies and procedures insureds contact agency to make changes to their coverage: verify the person requesting the change is the named insured, ask the insured for all of the information necessary to make the change, verify the insurable interest of any property being added, advise the insureds when they will receive verification of the change from the insurance company, upload or forward the endorsement from insurance company, make changes to customer's policy information in the agency management system, use the contact as an opportunity to cross-sell or account development How should you handle renewals? Explain the use of financial statements as a part of the underwriting process. general the renewal list 90 to 120 days prior to renewal. discuss the account and any change in type of entity, change in named insured, changes in the operation, additional employees there is a relationship between the financial condition and the loss experience of an insured; an insured experiencing financial difficulty is more likely to experience an increase in both loss frequency and loss severity. with the availability of automated accounting programs, it is much easier for customer to provide financial statements ument. does not amend, extend, or alter the coverage provided by the policies Evidence of Property Insurance Insurance Binder Explain some of the steps in claims processing. certificate holder and is not a contract or legal doc- evidence that insurance is in force, issued for information purposes only temporary insurance contract, issued when coverage is placed in force and the agency either has binding authority or has received permission from the insurance company to bind coverage. should only be issued by authorized persons understand that most customers have not experienced a loss and are unfamiliar with the process. do not indicate whether or not the loss is covered, let the insurance company When should you report a claim? Explain benefits of claims log. What are some issues of claims? What are common causes of E&O claims made against agents by insureds? adjuster accept or deny coverage. let the customer know what to expect next immediately report the claim to the insurance company use as a tool to identify trends with a company's claims department or its claims process if the claimant reports the claim, take their information but do not confirm any information, contact the insured; do not share policy information, especially coverage or limits of insurance, with anyone other than your insured failure to obtain proper coverage, failure to place coverage after agreeing to it, failure to give proper advice, failure to advise insured promptly of rejection or lack of coverage, misrepresentation, 
