CFPE501 Module 4 Chapter 7: Choosing Insurance Agents/Companies

What factors should be considered in selecting an agent?

- competence and inclination to service - experience, training, education, and specialization - reputation

What factors may be checked in deciding if an insurance company is strong enough to warrant a client's business?

- the company's rating with various rating companies - the NAIC Watchlist

Penny Whistle has been a life insurance agent with the ABC Insurance Company for seven years. Penny is a CLU and is studying to become a CFP® certificant. She regularly receives new clients through referrals and recommendations from her current clients. Recently, Penny drove 100 miles to personally deliver a claim check to a distraught widow. Would you do business with Penny, and why?

Yes, because she has seven years of experience, during which time she has received recommendations from her clients, indicating that she has a good reputation. Penny's CLU designation and her current studies for the CFP® certification indicate her commitment to ongoing education and training. Her recent trip to deliver a claim check shows her dedication and inclination to service.