This is probably the hardest institute to prepare for in advance, because
it is predominantly conceptual and procedural in nature, some of the
topics are somewhat subjective, and there is no topic over three hours
long to focus on.
The best preparation is probably to have a good understanding of various
agency management-related topics without being locked into your agency's
way of performing each function. You will be able to follow the presentation
and assimilate the information better, if you have some basic knowledge,
but you may have to answer some exam questions based on how an instructor
says a particular function ought to be performed, rather than how you
do it in your office. In other words, you would be well prepared if
you have a combination of knowledge and flexibility.
The Agency as an Organization (1 hour)
This topic will begin every AM institute. Topics will include the five
stages of agency growth, the components of an agency, critical factors
to analyze the value of an agency and reasons why it is important to
plan in the agency.
Human Resource Management (3 hours)
This topic involves personnel-related subjects such as job descriptions,
recruiting new employees, hiring and firing, agency procedure manuals,
performance appraisal, sexual harassment issues, compensation and benefits.
Marketing and Sales Management (2 hours)
This topic will focus on how to establish an agency marketing plan,
selecting and working with companies, determining whether to hire another
producer, producer contracts and compensation, the functions of a sales
manager, responsibility for account development, and account rounding
for both personal lines and commercial lines accounts.
Financial Management (2 hours)
The best background for this topic is a basic understanding of accounting
or, better yet, of agency accounting specifically. Some of the topics
dealt with will be income statements, balance sheets, financial ratios,
and dealing with accounts receivable and collections.
Legal and Ethical Responsibilities of Insurance Agents (2-3 hours)
This topic will deal with the legal responsibilities of insurance agents
to their clients and the companies they represent, including their shifting
role as a representative of both parties; understanding which parties
are principals, agents and third parties; types of agency authority
(express, implied or apparent); and loss control measures to help prevent
errors and omissions claims. If you have ever attended an E & O
Loss Prevention Seminar, that would be good preparation for this topic.
Agency Operations (2 hours)
This topic will address client expectations, establishing service standards
and customer satisfaction measurement procedures, the concepts of Staff
Stratification and Transactional Filing, and the basic processing functions
of an insurance agency, including the processing of new business, renewals,
endorsements and cancellations.
Agency Planning Case Study (2 hours)
This will be the last topic and will summarize the objectives of the
institute and draw together all of the subjects discussed, including
tying together the parts of the agency introduced in "The Agency
as an Organization." We will also cover the steps in the planning
process, goal setting and developing and implementing a business plan.
Group Discussion (3 hours)
At the Agency Management Institute you will have an opportunity to
choose two topics from among seven options, and the class will break
into small groups for three hours at some point, during which you will
be involved in ninety-minute discussion of the two topics you have chosen.
You can choose your topics based strictly on personal interest, or you
can choose topics that may help you understand corresponding subjects
covered in the institute.
The seven group discussion topics are: Company Markets
and Products; Producer Compensation; Account Development/Add-on Sales
and Sales Centers; Human Resource Issues; Client Service Systems; Agency
Financial Systems; Advertising and Promotion.
Optional Topics
The remainder of the Agency Management Institute will be made up of
two or more one-hour, two-hour or three-hour topics, such as:
