**Internal Needs Assessment - steps (convert or upgrade) - ANSWER1. establish time
related goals
2. develop questions to decide
3. make checklist to consider
4. plan for commitment or training
5. decide to upgrade/convert
6. assemble info & data comparison chart
*Agency Company contracts elements - ANSWERcommission schedule
ownership of business
contingency/ profit sharing
agency authority
contract termination terms
agency & direct bill responsibility
collection of premiums
notice of contract changes
*Circumstances leading to E&O claims - ANSWER-when agency are bought/sold
- loss of key employee
-brokering through unknown MGA
- serving new clients
-selling new products, policies, forms.
-following changes in business methods/technologies
-post-disaster
3 components of Client Retention Process* - ANSWER1. Build Rapport
2. Provide quality customer service
3. Educate Clients
3 Types of compensation - ANSWER1. Entry-Level
2. Mid-Level
,3. Maximum Level
4 steps to reaching level 5 the optimal level (implementation steps for moving forward
across technology levels) - ANSWER1. Build the Base
2. Establish the agency way
3. Measure for success
4. Move to the next level
5 Steps to market Success - ANSWER1. Choose a target market
2. Differentiate from competitors
3. establish clear goals
4. Monitor and measure goals to measure success
5. Use measurement data to make adjustments along the way
5 types of entities of business structure - ANSWER1. sole proprietorship
2. general partnership
3. Limited liability company
4. Subchapter S Corporation
5. C corporation
A comparative rating system is - ANSWERa third-party, vendor, or rating program that
enables an agency to obtain accurate risk quotes from several carriers
A legal agent is - ANSWERa party authorized to act ethically on behalf of another
A multigenerational and multicultural workforce connects an agency to - ANSWERthe
larger world, creating market opportunities
A realistic number for an agency to determine what number of new accounts is realistic
- ANSWER1. Consider the # of existing accounts
2. # of employees
3. quality of technology required to support accounts
4. Workflows
5. Procedures
A successful agency should recruit, hire, manage, and develop good employees by
asking - ANSWERWho - Define the type of person the agency wants to recruit and
retain
What - Describe the ideal employees profile
Why - Hiring the right employee makes a huge difference to the success of an agency.
Hire people who embrace the agency culture and who will become leaders within the
agency
,A SWOT analysis tool - ANSWERis a useful tool for evaluating a need for change.
evaluates an agencies strengths, weaknesses, opportunities, and external and internal
threats
Actual or Express Authority - ANSWERis plainly granted, either orally or in writing by the
insurance company to an agent.
Allows the agent to countersign, issue and deliver policies & binders, cancel policies,
collect premiums, and provide customer service
Additional types of agreements an agency may want to consider using - ANSWER1.
Employee Non-Disclosure and Confidentiality Agreement
2. Non-Compete Agreement
3. Non-Piracy Agreement
Advantages of External Professional Development - ANSWER1. Outside instructors
may have greater expertise
2. Local agency is unaffected by absence of less-productive employee
3. Employee can interact with those seeking the same training
Advantages of Internal Professional Development - ANSWER1. Fewer Expenses
2. Differentiated Training
3. Access to a vast selection of online training
4. Inexpensive webinars that require only an internet connection
Agency Direction (structure, profit ctr, markets) - ANSWERorientation: sales v. service
size: large v. small
Profit centers: products
ownership: private v. publicly traded
Internal Factors:
1. Productivity
2. Financials
3. Accounts/clients
4. Sales and Support
An agency can take specific steps like, to increase retention - ANSWER1. evaluate the
potential for increased profit through higher retention
2. Identify opportunities to increase retention such as improved services, processes,
etc.
, 3. setting reasonable retention goals
An agency should obtain a survey of compensation within the agency operating area
seeking information like - ANSWER1. Worker availability
2. Employee Benefits
3. Working Conditions
4. Job Security
An agency uses its value statement to accomplish several goals - ANSWER1.
Communicate the agency's core principles to shape its direction and organizational
goals
2. Focus on aspirations and behavioral issues that matter most to the agency's
leadership
3. Define the standards of conduct and expectations for all agency members
4. Communicate these statements orally, written, and electronic form
An agency's 5 growth stages - ANSWER1. Start-Up
2. Development & Growth
3. Success
4. Expansion
5. Maturity
An agency's mission statement should - ANSWER-provide a clear statement of an
agency's purpose and focus
-Identify characteristics that are broadly stated in terms of service, income, and profit
-establish clear growth goals serving its key stakeholders, clients, and employees
An agency's vision statement answers - ANSWERWhere do we want to go?
Vision Statement Example:
The vision of the Smith Agency is to be a fully employee-owned agency that is
recognized as the premier commercial lines agency in the region
An agency's vision statement should - ANSWER1. Communicate a clear picture of what
an agency is trying to achieve
2. Identifies characteristics that:
-reflect the long-range goals of the agency's policyholders
-project the view of what the agency aspires to be
-guide the agency's strategic development
An effective employee manual: - ANSWER1. establish expectations and define
boundaries
2. protects employers from liability by clearly communicating policies and procedures
3. Presents specific and practical information related to policies, procedures, and
benefits
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