CH 8 B

Question 1

5 functions that the effective utilization of technology will allow the brokers to realize

Answer 1

1 Improve client services
2 Store information safely and conveniently
3 Reduce operating costs
4 Handle larger volumes of work
5 Lessen the likelihood of human error

Question 2

What are 3 areas brokers have found technology useful

Answer 2

1 Enhance profitability
2 Build client relationships
3 Improve effectiveness

Question 3

Broker Management Systems should integrate seven areas:

Answer 3

1 Client file database
2 Product management
3 Accounting
4 Administration
5 Communication
6 Training
7 Service + Support

Question 4

What are three areas a brokerage will need to consider before upgrading technology

Answer 4

Understand their needs
Evaluate technology
Implement Plan

Question 5

Explain four criteria that should be considered with technology

Answer 5

Reporting capabilities
Capacity
Support + Training
Cost

Question 6

Explain Single-Entry Interface

Answer 6

Information is entered in the brokerages computer system, it is grouped (batched) and then transmitted to insurance companies

Question 7

what are two advantages of single-entry interface

Answer 7

communication costs are lower
training time is reduced

Question 8

what are two disadvantages of single-entry interface

Answer 8

Processing time can be slow
Delay in correcting error. It can’t be immediately corrected and needs to be resubmitted