Field office heads and their second-line managers are responsible for bringing new people into the life insurance business. It begins by the recruiter�s establishing a clear picture of the type of person he or she wants to recruit. It is usually based on the market the producer will be working in and the type of individual who has achieved success in similar circumstances.

It is not the recruiter�s purpose initially to be very selective; that comes later. The object at this point is to accumulate as many names as possible. To do this, recruiters use all of the sources at their disposal�personal contacts; referrals from other producers, clients, and friends of the agency; college and personnel placement offices; and newspaper ads.

After the recruiter gets an individual�s name and that individual exhibits some interest in a life insurance career, the process becomes very selective. It usually contains three stages: obtaining all the facts relating to the candidate�s background, experience, and personal qualifications; using an organized system for verifying and evaluating the facts; and devoting an adequate amount of time and effort to judge the facts and make an intelligent decision. These stages are accomplished through the implementation of a detailed selection-rejection process that has the following specific steps:

In addition to these selection steps, there are two additional ones that a recruiter should take to make sure the candidate is right for the job. One is precontract training�having the candidate actually do certain parts of the job before making a commitment. The other is giving the candidate a complete, honest, and realistic description of the job, including both the good and the bad aspects of the position.

Newly contracted agents enter the financing period referred to earlier in this chapter and follow a validation schedule that details what they must produce to remain under contract. They are also required to follow a training program that usually includes attending a school (often held in the home office) and completing specific learning assignments determined by the agency office. Of course, before actually going out and selling, recruits must also obtain the licenses required by the agency or company.

Generally speaking, a new agent�s training will cover these five areas:

Often a new agent will make sales calls with the head of the agency, a second-line manager, or an experienced agent. There are industry-supported educational and skill-building courses available to new producers (commercial programs are also available). As agents progress in their careers, there are additional programs that lead to professional designations. Since modern agents sell technically and financially complex products, training and development is an ongoing process. In addition, companies and agencies provide a wide range of programs to motivate their salespeople. These include regular meetings, production awards, print recognition, and the opportunity to qualify for sales conventions that are typically held in resorts or exotic locales.

The amount of supervision that producers require varies greatly. New agents generally require more supervision than veteran agents. Common to all agents, however, is the formulation of a sales quota, construction of plans to achieve that quota, and periodic reviews to measure the producer�s progress toward reaching the quota. Such quotas, plans, and reviews are usually not limited to a single measure but can include all or some of the following: premiums written, commissions earned, face amount sold, average premium per sale, number of policies, persistency rate, and activity (which includes prospects contacted, interviews conducted, sales literature mailed, telephone calls placed, sales interviews held, service calls made, and closings attempted). A producer�s continuing development is also part of periodic reviews.

Several levels of support are provided to help producers make sales. Often, the amount of administrative support�secretarial help, proposal generation, and mailings�given to a producer depends on his or her production level, with a high-producing agent earning his or her own private secretary or administrative assistant. Technical support is given to producers in the form of computer-generated policy illustrations, computer analysis of client finances, computer-controlled sales and performance measuring, and word-processed mailings. In more computer-literate operations, computers are also used for maintaining client information databases, prospecting among existing policyowners, and policy creation. Advanced sales support is provided to help producers sell a product or to a market with which they are not familiar or that requires special knowledge. This is common in group insurance, pension, and business situations.

Agency managers and directors usually support professional educational programs such as LUTC, CLU, and ChFC. Some insurance companies have established incentive programs to encourage agents to pursue these designations and increase their knowledge. Studies have repeatedly confirmed that CLU holders are more successful than non-CLUs in terms of sales and compensation. The most recent study from LIMRA indicates that ChFC holders earn even more on average than do CLUs and other non-ChFCs.

Some agencies require their agents to complete one or more professional designations within a short time after joining the sales force. If the company and agency deal with variable life and equity products such as mutual funds, the new agents will be given educational support to prepare for the examinations they must pass in order to sell those products. The Securities and Exchange Commission (SEC) mandates the examinations that are developed and managed by the National Association of Securities Dealers (NASD). There are also educational programs provided by the Million Dollar Round Table (MDRT) and the Association of Advanced Life Underwriting (AALU).