Tip of the Week

The Ethics of Life Insurance Selling

Licensed insurance producers engage in marketing and sales activities subject to a complex network of state and federal statutes, regulations, and industry practices that clearly define multiple levels of overlapping standards for ethical conduct in their sales activities with the general public. Oftentimes agent conduct can stray into gray areas of situational ethics or lead to prohibited conduct.

It is critical that insurance agents continue their self-education by staying current on laws, codes, and industry practices governing insurance marketing and sales. Although this self-education will require time and effort on the agent’s part, it is well worth the benefit of avoiding consumer complaints and maintaining their professional reputation. More importantly, insurance agents following ethical standards in their professional conduct can better serve the general public.