Agency Management Exam Latest

Certified Insurance Counselors (CIC) Agency Management Exam (Latest Update 2025 / 2026) Questions & Answers | Grade A | 100% Correct

Question:

Encryption

Answer:

the process of encoding data to protect information from unauthorized access, also contributes to data safety

Question:

Benefits to technology

Answer:

-Expedites processing time on routine requests -Improves data quality and minimizes human entry error -Saves keystrokes

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Question:

Challenges to technology

Answer:

-workflow not supported by all insurance companies -agency needs different workflows to work with insurance companies that do not support bridging

Question:

Benefits to Downloading

Answer:

-may reduce agency processing by more than 30% -workflow begins in an agency management or comparative rating system -More carriers provide support for personal lines downloads

Question:

Challenges to Downloading

Answer:

-Making downloads work correctly -Failure to conduct daily download audits may result in undiscovered errors or glitches that compromise the integrity of the agency's database -not all commercial line downloads are supported

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Question:

A comparative rating system is

Answer:

a third-party, vendor, or rating program that enables an agency to obtain accurate risk quotes from several carriers

Question:

Benefits to Rating Systems

Answer:

-The agency can efficiently obtain multiple company quotes -Reduces number of keystrokes required to obtain a quote -Allows wrapping a submission with all the necessary data to acquire a rate

Question:

Challenges to Rating Systems

Answer:

-May not provide an underwriting review or necessary reports -additional costs to an agency -rating assumptions are not always realistic

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Question:

Benefits to Company Proprietary Rating Systems

Answer:

-Includes underwriting approval/declination capabilities

-should be up-to-date and accurate

-in event of a technical glitch, company will normally stand by its quote

Question:

Challenges to company Proprietary Rating Systems

Answer:

-Agency employees must enter risk data manually into a carrier system to obtain quotes

-if an agency wants quotes from several carriers, each carriers proprietary system must be accessed and data must be re-entered

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