One of the first things I remember Paul Hutsey saying in 1968 was to do things right. If I stood back and looked at things objectively I would know what the right action would be. Paul and my grandmother never met, but they would have agreed upon at least one idea. Always treat people the way you would want to be treated in the same circumstances. In 1969, Paul convinced several members of our agency to join the National Association of Life Underwriters. The organization would have a great positive influence upon my professional career. Through membership meetings and educational meetings I was able to get a firm picture of what ethical practices should be like in insurance or any type of sales efforts.
I don’t remember what the early code of ethics stated or even if there was an early version, but the version adopted in 1986 has become a mantra for my career. When I started doing insurance continuing education the association sponsored me and I have used the code as a model for my participants ever since. One of the most striking parts of the code is in large, bold letters. I BELIEVE IT TO BE MY RESPONSIBILITY, what a great statement! If we all took responsibility for our actions we would have fewer problems to resolve. If we daily turned them all over to the Lord, He would direct us as He promised.
"Trust in the Lord with all thine heart; and lean not unto thine own understanding. In all thy ways acknowledge him, and He shall direct thy paths." Proverbs 3:5,6
Beyond the responsibility statement are ten specific areas mentioned by the code. They apply directly to the life insurance/financial services arena, but are valid for other professions also. I want to illustrate how each of the statements has become meaningful in my life. “To hold my profession in high esteem and to strive to enhance it’s image.” I think each person needs to proud of what God has given him or her to do as a vocation. Early in my career Paul Hutsey felt I didn’t really feel good about our business. He gave me some time to look for other work. During my search I realized I wanted to continue my career. At about the same time I saw the headline on a magazine. It read, “The Ten Least- Trusted Professions in the United States!” I couldn’t resist the article. According to the article the least trusted occupation was that of used car salesman, next was politician, and third was life insurance salespeople. I was disappointed but not surprised.
Over the next several years I worked in the association along with others to improve our professional image. There were signs we had made some inroads. Celebrated national financial columnists gave us better press. Then the period from 1983-88 came. The issue of replacement cast a dark shadow over the insurance business. Many policies that were replaced were properly handled. Others were not advised well and it seems the reason was to benefit the replacing agent. By the year 1991, I was district manager for Prudential in the Wichita office. I was fascinated as I noticed the title of an article in one of my magazines. Again, “The Ten Least Trusted Professions in the United States.” Used car salespeople again topped the list. No commentary on my part, just the facts. Once again politicians were second, but this time lawyers had slipped into third. Unfortunately life sales people weighed in at #4. I always try to look for a positive. The move from third to fourth is a 33% improvement and that ain’t bad.
“To fulfill the needs of my client to the best of my ability.” How can I know the needs of my clients? Someone has said, “People do things for their reasons, not ours.” If that is true then we get to know their reasons by getting to know them. I believe the only way of fulfilling the needs of any other person is by listening so we can understand them. When we meet needs the other person receives value. If they purchase our product they will tend to keep the purchase if they understand the why. When we meet the needs of our family we build the bridge to greater future relationships. Meeting needs is a part of our responsibility in each aspect of our life.
“To maintain my clients confidences.” One of the better sales I was involved in was an estate-planning sale to a farmer east of South Haven, Kansas. The farmer was so pleased with our efforts he asked us to talk to his son about personal financial needs. We scheduled the appointment at a time I wasn’t able to accompany my young agent when he talked to the farmer’s son. Not knowing that he shouldn’t share the details of the father’s estate plan the young agent revealed information that ultimately caused the farmer to withdraw his estate plan and our solution. It was an expensive and bitter pill to have to swallow, but an important lesson revealed. Only those that need to know should know. They trust us as advisor and friend; we must honor their trust.
“To render exemplary service to my clients and their beneficiaries.” I ask the question in my seminars, “ What is good service.” Probably one of the better answers is that good service is the best service we are able to give. Another good answer is that outstanding service is meeting each of the requests they have with a timely and complete response. While on a long drive home one evening my mind wandered to thinking about the really unreasonable service requests I felt I had received over the years. I could think about only three that were highly unusual or maybe unreasonable. Finally, I thought only three in thirty years, or one every ten years. I can handle that. My wife says there were probably more. She says I have the most positive selective memory she’s ever seen. It works for me about 95% of the time. There are a whole lot more good people to work with than those that test our patience from time to time.
“Adhering to professional standards of conduct” was so engrained into me by my early trainers and role models that I’ve been without excuse. When you add to that Christ’s teaching of how to deal with other it almost becomes a no-brainer. We still must be careful never to take the easy way out and do less than a particular situation might require.
“To present accurately and honestly all facts essential to my client’s decision.” It is sometimes possible to tell all true facts, but not be totally honest. When we leave out important facts we allow people to come to a false conclusion. If we give all the positive aspects of a solution without the downside, we show lack of respect for our client, our product, and ourselves. Sometimes we believe so strongly in what we do we justify not being totally open in our dealings. We develop a short-term mentality, rather than looking at the big picture. In the big picture those things done right will grow to give us stability. Short-term thinking often forces us to spend time correcting what we could have done right in the first place.
“To perfect my skills and increase my knowledge through continuing education.” Paul Hutsey forced the issue of continuing education with me in 1969, twenty years before the state of Kansas developed continuing education laws. I am forever grateful that he cared enough to take the harder path. He could have left me to my own inventions. My career would have taken a far different path. No matter what area of life we talk about continued education and continuous improvement are vital. Our marriages will wilt away without both parties continuing to work for improvement. A wise man told me more than once, “If you don’t work to improve, you’ll go backwards, because we never stay stationary.” Continuing education is the difference in losing the edge or maintaining a value-added for all those depending upon us.
We’ve really talked a lot about the eighth statement, “conducting my business in a way that raises our professional standards.” The attitude that it is “my responsibility” goes a long way as does meeting needs and giving good service. These indicators are the proofs of the proper conduct of our business. “To keep informed with respect to the applicable laws and regulations and to observe them in the practice of my profession.” Ignorance of the law is no excuse. I can remember hearing those words long ago. The courts have judged them to be true over the years. Our being licensed puts us at a higher duty than many others. We must stay current. Paul Hutsey used to tell me that I would always have to keep great knowledge about the law, but it was not for me to practice the law. In society in general we have a requirement to operate within the rules. Ignorance of the law is truly no excuse.
“To cooperate with others whose services are constructively related to meeting the needs of my client.” Cooperation, what a great word. How much could our society accomplish with a spirit of cooperation? In the early nineties a group of my agents and I embarked upon a series of estate planning seminars. We had a good deal of success but had one major hurdle we had to overcome. We made one sale and the client’s attorney told him he didn’t need the solution we had suggested. I asked the client if the attorney would pay the estate taxes upon his death. I won the point, but lost the sale. The client had the greater loss, because he and his family had the problem. The attorney and I were merely part of a “fractured” team that was failing to be problem-solvers. Before we did another seminar we contacted local attorneys and shared with them the type of work we were attempting. We enlisted their help in the process. In a later sale the attorney became a key factor in our client deciding to take a recommendation. When professionals work together in a spirit of cooperation great things can and are accomplished. I truly believe the code we have been writing about is a “code to work by.” I feel this way because most of the principles on dealing with people have a basis in scripture. In fact when I finish my presentation during my ethics program I am reminded of a great verse in Proverbs 22:1. It reads as follows: "A good name is rather to be chosen than great riches, and loving favor rather than silver or gold."
"Give me love and work- these two only." William Morris
"Not slothful in business Romans 12:11a
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