Insurance Basics
What is a premium in insurance?
The amount a policyholder pays to an insurance company for coverage.
What information is typically needed to provide a car insurance quote?
Driver's license number, vehicle details (make, model, year), driving history, and coverage preferences.
What is the main difference between Commercial Lines and Personal Lines insurance?
Commercial Lines cover businesses, while Personal Lines cover individuals and families.
What does ACORD stand for in the context of insurance?
Association for Cooperative Operations Research and Development.
What should a CSR do when answering a customer call for the first time?
Greet the customer politely, introduce themselves, and ask how they can assist.
What is a deductible?
The amount the policyholder must pay out-of-pocket before the insurance company pays for a claim.
What is the difference between an "initial quote" and a "final quote"?
An initial quote is an estimate based on the information provided, while a final quote reflects the actual price after full underwriting and all details are verified.
What types of businesses would typically need a General Liability Insurance policy?
Small businesses, contractors, and companies that interact with customers and have public exposure.
What is the purpose of an ACORD 25 form in auto insurance?
It is used to provide proof of insurance to clients, often required for vehicle registration.
What is the best way to handle an irate customer on the phone?
Listen actively, remain calm, empathize with the customer, and offer solutions or escalate if necessary.
Name two types of insurance policies commonly offered in the US.
Auto, Homeowners.
What does "coverage limits" mean in the context of insurance quotes?
The maximum amount an insurance policy will pay for a claim.
Name one key coverage type that is typically included in Personal Lines insurance but not in Commercial Lines.
Homeowners insurance, which covers a residential property, is typically part of Personal Lines, while commercial properties are covered under Commercial Lines.
What is an Auto Insurance ID Card, and what information does it contain?
An Auto Insurance ID Card provides proof of insurance coverage and typically includes the policyholder’s name, policy number, vehicle details, insurance company name, and coverage dates.ACORD 40 (Auto Claim Form), ACORD 140 (Property Claim Form).
What information should a CSR verify with the customer when setting up a new policy?
Name, contact information, details about the insured asset (e.g., car, home), and desired coverage.
What is the difference between liability and comprehensive coverage in auto insurance?
Liability covers damages to others in an accident you cause; comprehensive covers damages to your vehicle from non-collision events (e.g., theft, weather).
Explain the role of a CSR when offering a quote to a potential client.
CSRs gather necessary information, provide pricing options, explain coverage details, and assist in adjusting coverage to meet the client's needs.
What is "Workers' Compensation Insurance," and why is it mandatory for most businesses?
Workers' Compensation Insurance provides coverage for employees who are injured or become ill as a result of their work. It is mandatory in most states to ensure that workers receive medical care and compensation for lost wages, and to protect businesses from lawsuits related to workplace injuries.
Why is the Declaration Page important for both the insured and the insurance company?
The Declaration Page is important because it serves as a summary of the agreed terms between the policyholder and the insurer. It is used to confirm coverage details and is essential in case of a claim or policy review.
How does a CSR handle a policy change request over the phone?
They should verify the request, confirm the details with the client, update the policy, and provide the client with confirmation.
Define "underwriting" in the insurance industry.
The process of evaluating and assessing the risk of insuring a client and determining the premium rates.
What is "bundling" in insurance quoting?
Offering multiple policies (e.g., auto and home) together at a discounted rate.
What is the difference between "Professional Liability" insurance and "General Liability" insurance in the context of Commercial Lines?
Professional Liability covers claims of negligence or malpractice due to professional advice, while General Liability covers physical damage, bodily injury, and property damage.
How does a CSR ensure that all required documentation is accurately completed for a new policy?
By reviewing each form carefully, verifying client details, and ensuring all necessary signatures and dates are included.
When should a CSR escalate a call to a supervisor?
If the issue requires more authority, if the customer requests escalation, or if the CSR is unable to resolve the issue satisfactorily.