The Insurance Agent's Checklist to Win Clients and Avoid Lawsuits

Whether you're a new agent or you've been aroundspecial skills were used properly in accordance with
a while, the big bad world of marketing your servicesrules of fairness and fiduciary responsibility.
and the need to cover your assets eventually knocks___ Be certain that the insurers I represent are
at your door. Do you think the two are separatefinancially solvent at the time insurance coverage is
issues? NOT. For much of what you do in thisplaced for my client. Monitoring solvency after the
industry, the very things you need to do to influencesale may not be a legal responsibility, but it is a good
new clients are the same things that keep you outmeasure of "preferred business conduct".
of trouble. That's why we developed this checklist!___ Develop my own Privacy Policy to explain to
Some items may seem a bit obvious, even hokey,my clients how and why I will protect the personal
but they work and as you get busier it's important toand financial information they have entrusted to me.
review them to make sure you stay on track.___ Never advertise or represent that an insurer or
___ Focus on customer service and customerproduct as safe because of the existence of state
satisfaction first.guaranty funds.
___ Disclose all facts needed to enable my clients to___ Never make an untrue statement or derogatory
make informed decisions.comment about another insurer or competing agent.
___ Sell to my client needs, not my own. My___ I will witness clients signing papers and try never
approach will be solutions-based; helping my clientsto simply leave them or mail them for later signatures
solve their insurance dilemmas by knowing theirwhere I am not present to witness.
needs and financial objectives.___ I will strive to personally deliver issued policies
___ Ask the 3 closing questions to determine thatpromptly because it is "preferred business conduct".
my clients understand the product I am___ Develop standard operating procedures and an
recommending:operations manual to help me be consistent in how I
· Have I given you all the information youtreat all clients, handle premium payments, document
need to make a decision?client conversations, review client policies, process
· Does this information or policy makeapplications and cancellations, respond to client
sense?inquiries and complaints.
· Is there something else I can answer for___ Maintain good customer contact and always
you to assure you that this is the right solution basedrespond to letters, calls, voice mails and e-mails. And,
on your needs and objectives?since I am aware that virtually all communications
___ Pay close attention to my client's need forwith a client is considered advertising, my words will
liquidity. Products that fail to match a client's timebe clear, complete and balanced concerning benefits,
frame should be avoided and those that fall short ofcosts, limitations and terms.
a specific need supplemented.___ Take all client complaints and concerns seriously
___ Spend extra time with client applications - aand be sure that they are resolved fairly and quickly.
serious matter where mistakes can void a policy. I willWhere a dispute develops, I will not try to settle the
make sure that my clients understand the importancecase or ignore the duty I have to my errors and
of accurate information and the ramifications ofomission carrier.
mistakes - especially intentional misinformation.___ Respect my clients right to privacy and
___ Never promise complete coverage if it is notsafeguard any information I collect on them. I will
possible to achieve. Rather, I will strive to provide mynever make a derogatory remark in my client's file or
client the most correct coverage available at the timereveal personal information.
of sale.___ Always make a note to my client's file regarding
___ Do my absolute best to spot and disclose gapsany actions taken or proposed and I will create a
in coverage, even if it means my clients mustpaper trail of all conversations and reminders.
purchase additional coverage elsewhere. My silence___ Review my client's coverage annually. Where I
about inadequate provisions or coverage gaps is thehave a special or long-term relationship with my client
same as a lie.I realize that I may have a legal and ethical duty to
___ Offer immediate or conditional coverage tomonitor the appropriateness of these policies after
clients if it is within my authority to do so.the sale.
___ Always explain widely available options available___ Make sure that any replacement policies are
on policies I sell.beneficial and understood by my clients. And, I will
___ Know the difference between policies I amdocument why a replacement policy serves my
selling and carry specimen policies to answer specificclient's needs and objectives better than keeping the
questions on coverage or terms.old policy.
___ Always use reasonable care and follow through___ Abide by all laws and regulations in my area.
in obtaining coverage. And, I will always act within___ I will not influence clients or prospects in thinking
standards of other agents in the same field.they will lose a right, privilege or benefit under any
___ Never make promises that exceed the limits offederal, state or local law if they fail to respond to
the policy I am selling.my letter in order to make a sale.
___ In all my advertising I will follow strict consumer___ I will not use an address so as to deceive as to
protection rules including the prior approval by mymy true identity, location or licensing status or that
insurer, identification of my insurers, accuracy andof my insurer.
truthfulness, realistic illustrations and quotes, fair___ I will not use the term seminar, class,
comparisons and competitive references, realinformational meeting or substantially equivalent term
testimonials or endorsements and the fair treatmentto characterize the purpose of a public gathering if
of all individuals I approach and serve. Also, mythe real intent is to sell insurance without adding the
advertising shall not employ words, letters, initials,words and insurance presentation immediately
symbols or other devices which are similar to thosefollowing those terms in the same type size and font.
used by a governmental agency, charitable institution,___ If I am doing business with senior citizens I will
etc to mislead clients into thinking I am endorsed bybe particularly careful to avoid any actions that might
or authorized by these entities.scare or intimidate like alluding to their loss of benefits
___ To reduce client disputes, I will develop andin any way from Medicare or Medicaid. I will voluntarily
utilize client disclosure agreements acknowledging anywithdraw any offer if I become aware that a
limitations in my services, policy options that wereprospective senior client may lack the short-term
refused as well as client refusals to seek outside taxmemory or judgment to knowingly purchase an
or legal advice. Posting a Public Policy (on a websiteinsurance product.
and in my office) with regard to disclosures and___ I will not restrict or limit a client or prospective
referring to it in my ads and stationary will help if Iclient from having other persons present at a
forget to present a written disclosure form.meeting, including family members, financial advisors,
___ Follow strict procedures when using illustrationsattorneys, etc.
that involve showing all pages of the printout and___ If I am meeting in a client's home, I will properly
explain to clients that it is a projection not anotify him that I am coming, either by phone or in
guarantee of future policy performance. Also, I will bewriting.
careful not to highlight or change the illustration. In___ At any meeting, my client has and I will honor
any casualty quotes or proposals, I will be veryhis right to end the meeting at any time. And / or , I
specific to match the quote to the specific coveragewill end any discussions and leave the client's home
and avoid any language that implies the client isimmediately after being asked to leave.
covered.___ Read and know the terms of my agency
___ Always obtain a specimen policy for products Iagreement(s) including all duties and responsibilities
sell or intend to sell. I will study these policies andthey bear.
know what they say and say what they mean___ If I refer a client to another professional, I will
because ambiguity, whether in a policy or myrefer only to those I believe to be trustworthy and I
presentation, will not be decided in my favor in anywill let the referred professional do his own
dispute.fact-finding concerning my client's needs and
___ Strive to learn as much as I can about theobjectives.
underwriting of products I sell in order to better place___ I will remember that I am also a fiduciary of my
my client's coverage in an expedient and efficientinsurer and must always exercise reasonable care,
manner because in any insurance transaction time isskill and diligence on their behalf.
working against my client.___ I will be come a student of consumer protection
___ If I profess to have special knowledge orissues and "agent blunders" because I can learn a lot
expertise in a field or product, I realize that I haveabout serving my clients correctly from the mistakes
assumed a higher standard of care that my clientsmade by others before me.
depend on. In any dispute, I will have to prove my