Ethical behavior has been a core value of the American Society from its inception. The Society�s impressive programs and initiatives over the last few years are further evidence that this core value is alive and well today.

Clearly�by virtue of your professional designations and active membership in the American Society�you exemplify the highest standards of professionalism. With all these wonderful initiatives�and with such a large and distinguished group of professionals committed to doing the right thing�why, then, does a crisis of confidence persist among consumers about the life insurance industry?

We know that consumers find insurance products to be very complex and technical. They have to trust the judgment of an "expert" to advise them, and people are frightened by that.

Then, of course, there�s competition from elsewhere in the financial services industry. Consumers have more choices that appear less complex and more attractive than life insurance. To fight back, some in our industry have positioned life insurance products as tax-advantaged investments, rather than the major source of income protection. And that�s led to some of the negative perception we face today.

Finally, all you have to do is read the papers, where the news is often too true to be good. As we all know, there has been tremendous fallout from media coverage about the illegal sales practices of a handful of agents from an even smaller handful of companies.

On the other hand, the news isn�t all bad. One ACLI study shows that most policyholders are pleased with the performance of their agents and their companies. Sixty-eight percent of policyholders with recent agent contact consider that contact "very helpful." Seventy-five percent rate the service provided by their agent as "very good" or "excellent." Eighty-five percent agree that their own company provides good service. Sounds encouraging, doesn�t it?

Despite all the positive things we "good guys" have been doing in the industry, why does the negative image persist? Some of it is due to circumstances beyond our control.

So let�s look at what we can do to change the situation, because a lot of it is well within our control. Our problems are not solely because of a few "bad apples." Sure, they�ve gotten the headlines. But if the rest of us performed perfectly, then we could easily dismiss those bad apples as renegades and outlaws, and the public would agree with us.

Unfortunately, however, the public has a negative image of our industry because that image has a basis in fact. And we can�t change the image until we change the basis in fact."

Now, we�re all professionals. We�re good guys, right? Yet, we routinely do things that leave consumers with a negative impression. I�m not talking about blatant abuses. Quite the opposite. I�m talking about activities and practices that are socially acceptable at NALU and CLU meetings and among elite example-setting agents everywhere.

Let me give you a list of things that many good agents do which are considered "socially acceptable" in our profession. Then I�d like you to ask yourself if you engage in any of these practices. If you answer "yes," then�despite your best intentions�you are contributing to the basis in fact for our negative image.

1) Not telling the prospect "the whole truth."

I don�t mean lying to prospects. But how often do we emphasize only the positive aspects of the product we�re selling? How often do we stop short of telling them what the risks and downsides are? It�s understandable. Pointing out a potential negative could scare off a prospect.

On the other hand, what clients don�t know can hurt them�and hurt your business. If they are unpleasantly surprised somewhere down the road by the performance of the product, they will be upset with you, your company and the industry.

In an effort to gain or keep a client, have any of us sold either the cheapest policy, or simply what he or she asked for, instead of what the policyholder really needed? Maybe you were afraid the client wouldn�t buy, or that a competitor would undercut you. Again, it�s understandable. But if the client has a problem somewhere down the road, and the product can�t solve the problem, we have an unhappy customer.

3) Not talking to your customers as often as you should.

I believe you can�t talk to a customer too much�at the very minimum, once a year�face-to-face. Here�s an example of what happened when my company�s agents did not do that.

At one point in my career, I decided to do a computer search of our policyholder database, and found that many Fortune 500 CEOs had Connecticut Mutual Life policies. Unfortunately, the majority of them were orphans. Our agents sold them policies way back when those CEOs-to-be were just starting out, and never stayed in touch.

4) Using illustrations rather than focusing on past performance.

It�s been said that the best predictor of future behavior is past behavior. But as we�ve all learned in recent years, predicting anything is risky business.

It used to be that our industry could routinely expect to meet or exceed dividend projections. As a result, our assumptions were as good as promises. But those days are long gone. So projecting "current assumptions" is flirting with disaster. Even if you carefully explain to the customer that "this is only an illustration," the customer takes that piece of paper and thinks "this is what�s going to happen." Then, when it doesn�t, the customer becomes disenchanted, if not downright angry.

When I talk about "focusing on past performance," I mean this: Look at the company behind the product. A company with a long, proven history of financial strength and sound business practice is likely to be there to write the check 20, 30 or 40 years down the road, when the client really needs it.

That is the essential promise that underlies any life insurance contract, and that�s what the customer really needs and wants.

5) Looking for "something for nothing" from insurance companies.

This means saying to yourself, "This company will pay me a couple more points in commission," or "That company will tell me their policy performs better than my company�s policy, so I�ll sell that policy."

After all, it wasn�t customers who said, "I need the kind of projections that Executive Life, Integrated Resources and Baldwin United provided." Agents said it. They believed that those companies could do something that the rest of the industry couldn�t do. And they paid the price, as did their clients.

If you want something for nothing from a company, and you promise customers something that the company really can�t deliver, customers will eventually be unpleasantly surprised. Then they�ll blame you, and they�ll blame the insurance business.

6) Misrepresenting who you are.

Most agents, even the good ones, who tell clients they are "independent," are really career agents of some company. But not every consumer is savvy enough to ask an agent if he or she pays self-employed Social Security tax, which is the litmus test for independence.

I can understand the reluctance to admit to a company affiliation. A prospect may think you�re not as objective as a so-called independent agent. But this is a classic case where honesty is, indeed, the best policy.

I was always candid with my clients on this point. I�d say, "I�m an agent of the Connecticut Mutual Life Insurance Company. I�ve chosen to be with that company because it�s a wonderful company. They have good products that can, for the most part, meet your needs. But let me tell you something strange about our industry. If I bring an application for insurance on your life to any company in the business, they will happily pay me a commission. So if some other product will serve your needs better, or if you have a strong reason for wanting your policy to come from another company, I can do that for you, too."

I�ve had clients who told me, "Denis, I respect what you�re saying, but you�re tied to Connecticut Mutual. We�ve got a proposal from an independent agent, and we think he�d be more objective."

To which I�d say, "His company affiliation is a matter of public record. If I can prove to you he is a career agent with another company and has not been forthright about who he is, would that affect your decision?" Usually, it would.

You can be objective, without being "independent," and if you�re frank about it�up front�your client will believe it. The point is, you not only need to have the right behavior, you have to tell the truth and have the guts to live that truth. In other words, you have to "walk the talk."

I have always believed that it will enhance your sales if you play it straight. And, frankly, given the erosion of consumer confidence in what we do, there�s never been a more important time to "play it straight."

7) Failing to pursue continuing education.

Think of it this way. How would you like to be operated on by a surgeon who had not improved his technique or read a medical book since he graduated from medical school? I don�t know how we can best serve our customers without being up to date. So, among other things, I would strongly urge you to participate in PACE, the American Society�s continuing education program for accreditation.

8) Not delivering the policies.

Let�s face it. Most life insurance customers don�t really know what they�ve bought. When the product fails to perform according to unrealistic expectations, the customer is dissatisfied.

I personally delivered every policy I ever sold. I sat down with the customer and reviewed it, paragraph by paragraph. I did not leave until I was sure the customer understood what he or she had just purchased. If you don�t do this, you leave yourself�and the industry�open to negative fallout when the client�s misconception about what he or she bought collides with the reality of what was bought.

This is like an estate planning questionnaire, but it�s not for the purpose of selling estate planning. It is a means of getting to know your customer thoroughly. After all, you can�t properly serve a customer�s needs unless you really know who the customer is.

You should physically examine each existing insurance policy, mutual fund prospectus, or any other documentation the customer has. Remember, when it comes to insurance and investment, customers often don�t know what they really bought. They may give you inaccurate information, not because they�re trying to mislead you, but because they simply don�t know what they have. If someone tells you he or she already has a million dollar policy with another company, he or she may not realize that what was bought is a travel-accident policy. By pointing this out, you�ll be doing your customer a service. And you�ll probably make a sale.

This is the only way to make sure the customer understands what he or she has purchased. If you explain things thoroughly and accurately, you reduce the possibility that the customer will be disappointed later by unrealistic or false expectations. You may wish to keep your client�s policies in your safe, but you can still deliver the policy first.

This is the best way I know to keep your customers happy. And you�ll be doing them a valuable service by keeping their insurance programs updated. What�s more, regular client contact is perhaps the most effective public relations you could ever create�for yourself and for our industry.

My friend, Bob Tedoldi, CLU, ChFC, the current president of NALU, suggested a fifth idea which I liked so much, I plan to adopt it. After each interview, Bob sends a summary letter to the prospect or client. This is, in effect, "the minutes of the meeting." And he keeps these letters on file. He reports that many misunderstandings have been prevented by this file.

If people have confidence in someone they believe is really working in their best interest and making good recommendations, then they will be much more likely to implement appropriate financial programs.

We can be those trusted advisers, provided we get back to basics. That means understanding the clients� needs and showing how we can help them meet those needs, rather than focusing on why our product is better than someone else�s.

This is a great time to be great in the life insurance business, because there�s a market out there of people who are more affluent than they�ve ever been and who have a greater need for what we do than ever before.

I can�t think of a better job today, or in the future, than being a life insurance agent. As soon as I retire, I�m looking forward to becoming an agent again. If we all go forward with that attitude and convey that kind of joy and enthusiasm to our clients, we can go a long way toward restoring consumer confidence in our industry. I hope you�ll join me in that effort.