Chapter 6
Conducting an Ethical Review of Your Practice

The important points addressed in this lesson are:

An ethics and compliance audit of the agent's practice is designed to review sales practices and tools in order to ensure that they meet ethical requirements.
The ethical review consists of inventorying and reviewing sales tools and practices, and changing anything that is unethical or non-compliant.
The guiding ethical principle in conducting a practice review is that all communication with a customer must be honest, convey information fairly and not mislead.
The financial services agent that maintains a highly ethical practice may find that it provides a marketing advantage.


For many people, the word "audit" conjures up visions of IRS agents reviewing business expenses or corporate auditors evaluating procedures.  In an ethical review, we audit our sales tools and practices as the key step in becoming more ethically centered and ensuring compliance as a professional insurance agent.

The ethical review permits the agent to develop a complete picture of the materials that are used in each step of the sales process from the pre-approach to the sending of post-sale correspondence.  More importantly, the ethical audit allows the agent to evaluate his or her tools and practices to determine whether or not they promote an ethical practice and are in compliance.  To the extent that they fail to meet these criteria, the agent can take any needed steps to bring them into compliance.

 The ethical review consists of 3 steps:

pulling together the sales tools and practices used by the agent
evaluating those tools and practices in relation to ethical and compliance guidelines, and
changing any unethical or non-compliant elements.


Chapter 6
Collecting Information
Evaluating Agency Practices
Reforming Unethical Practices
Marketing Advantages
Chapter 6 Review Questions
Ethical Review Form