Selection of a Good Insurance Agent or Broker

The good insurance agent has considerable knowledge of the protection being offered and also understands related areas of personal finance. The good agent is a person of integrity who puts a client's interest first. Good agents communicate clearly, so the insured understands the needs the insurance fulfills and the rights and duties created by the contract.

Evidence of the agent's knowledge is found in the ability to answer questions clearly. If a question cannot be answered immediately, the agent knows where to get the answer. Some agents show their desire to add to their knowledge by attending home office classes and seminars, Other agents work for professional designations. Traditional professional designations include the Chartered Life Underwriter (CLU) and Chartered Property Casualty Underwriter (CPCU). Some life insurance agents who have expanded their practice into professional financial planning also earn the Certified Financial Planner (CFP) designation. The respective Web sites for the organizations sponsoring these designations are as follows:

CFP - http://www. cfp.net/become/
CLU - http://www.amercoll.edu
CPCU - http://www.cpcusociety.org

Other professional designations are available, and evidence of continued education is a good sign that a person is keeping up with new information and practices.

It is often difficult for a consumer to form an opinion about an agent's trustworthiness. A recent resource is found on the Web sites of various state insurance departments that lists the names of agents who have been disciplined or have had their license revoked for unethical or illegal behavior. Knowledge of the agent's reputation and referral by a satisfied customer are good indicators of an agent's past performance. The same reasoning applies to the agent's desire and ability to provide service after the sale. It makes good sense to work with an agent who can be reached easily and who is available to answer questions. Because the agent's service will probably be needed long after the sale is made, it is desirable to deal with an agent fully committed to an insurance career. For this reason, a consumer should be cautious in dealing with part time agents or relatives selling insurance as a sideline.