Deal with competent insurance agent to avoid losses

Each time you plan to secure an insurance plan, ensure that there is no misrepresentation by the sales agent before purchasing the cover.

This is because whether occurring as a result of limited product knowledge from the agent or fraudulently, no insurer would be ready to accept any liability in compensating you as policyholder for a financial loss incurred through misrepresentation.

 It is therefore your responsibility to ensure you purchase a cover from an insurance agent who is both competent, and honest.

 Below are some of the suggested questions that would help you evaluate the competence and honesty of the agent before you can opt to engage him in any sales transaction. 

What is your professional background and experience?

Since your insurance agent is your advisor before you secure an insurance plan, you certainly need a competent agent who has both relevant education background and experience in either the insurance industry or the financial sector.

Inquire about professional qualifications such as certification of proficiency (COP) in insurance which has locally been approved as a compulsory certification for those who sell insurance products.

 While this designation does not guarantee competence, it does imply a reasonable level of financial education and literacy in insurance products.

In addition, you need to know his experience in the insurance industry.

It is not advisable to deal with an agent who is new in the industry since you may be exposed to misrepresentation resulting from lack of adequate knowledge.

How did you get my contacts?

Don’t be afraid to ask this question since it would help you assess the honesty of the agent. While some agents get contacts of prospects through referrals, some of them do get them through weird ways that could create suspicion. 

 It is recommended to deal with those agents who have obtained your contacts through referrals since you can contact those referees to know more about them .

Referral also shows that the past or previous clients are pleased with the agent’s service and have no qualms in introducing the agent to you. F
ollow up this later with a telephone call to the referees to establish the truth. 

How do you get paid?