- Agency Management Test Guide

Certified Insurance Counselors (CIC)

• Agency Management Test Guide

(Latest Update 2025 / 2026) Questions & Answers | Grade A | 100% Correct

Question:

Ethics

Answer:

Rules or standards associated with moral duties and obligations

Question:

Three Most Common Ethics Violations

Answer:

Mishandling of client funds Conflict of interest Lapsed licensing

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Question:

The Foundations of Ethical Behavior

Answer:

• Honesty
• Integrity
• Trustworthiness
• Loyalty
• Fairness
• Concern for Others
• Respect for Others
• Law Abiding
• Commitment to Excellence
• Leadership
• Reputation and Morale
• Accountability

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Question:

Steps in Ethical Decision-Making

Answer:

• Stop and think

• Clarify goals

• Determine facts

• Develop options

• Consider consequences

• Choose

• Monitor and modify

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Question:

Establishing an Agency Code of Ethics

Answer:

Ethical practices move from top to bottom. Agency owners/ managers define and model ethical behaviors, and managers accept responsibility for making difficult decisions to enforce change.

Implementing a Code of Ethics requires a constant commitment.Owners/managers must evaluate the code's effectiveness regularly, gathering

information through:

staff discussions questioning insurance companies client surveys

Question:

Legal and Ethical Duties of an Insurance Agent

Answer:

• procure insurance asked for by a client using reasonable diligence and

inform the client if not able to do so

• notify a client of policy expiration when the agent receives information

pertaining to the expiration date that is intended for the client

• renew a policy or notify a client of non-renewal
• investigate the solvency of an insurance company
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