1. BEST PRACTICES MONITORING

2. MONITORING Of Agents

3. MONITORING Of Agents Of Employees

4. MONITORING Of Agents Of Employees Of Customers

5. WHAT IS IT? To keep track of systematically with a view to collecting information To test or sample, especially on a regular or ongoing basis To keep close watch over; supervise

6. WHY? - The Good, and the Bad Need to know –AND Need to Fix

7. WHY? - The Good, and the Bad Need to know –AND Need to Fix Otherwise, be an ostrich, hide from it and it will bite you back!

8. PROVEN AXIOM People respect what you inspect Ask for the obvious –Use attestations –Use signoffs

9. ATTESTATIONS Keep them simple, but obvious in the sales process for:

10. ATTESTATIONS Keep them simple, but obvious in the sales process for: Sales materials

11. ATTESTATIONS Keep them simple, but obvious in the sales process for: Sales materials Financial Needs Analysis

12. ATTESTATIONS Keep them simple, but obvious in the sales process for: Sales materials Financial Needs Analysis Not inappropriate replacements

13. SIGNOFFS Use of the Positive/Negative signoff “Unless we hear otherwise, your receipt of this information signifies acceptance. If that is not your intent, please notify us at the home office before MO/DAY/YR”

14. SIGNOFFS Advertising compliance signoff –Company signs, so should agents –Include Independent third parties, including internet vendors –Why? Places responsibility at the responsible level –Keeps awareness in the field

15. SIGNOFFS Compliance with Federal Crime Bill

16. SIGNOFFS Compliance with Federal Crime Bill Signoff on Compliance Manual

17. SIGNOFFS Compliance with Federal Crime Bill Signoff on Compliance Manual Delivery of Training

18. SIGNOFFS Compliance with Federal Crime Bill Signoff on Compliance Manual Delivery of Training Delivery Receipt

19. TELEMONITORING Build into current telephone underwriting calls for new sales Review first new business as a group of applications Spot calls for new business

20. WRITTEN COMMUNICATION Welcome Letter with survey at delivery

21. WRITTEN COMMUNICATION Welcome Letter with survey at delivery New Business Survey –LIMRA CAP –Internally-generated

22. WRITTEN COMMUNICATION Welcome Letter with survey at delivery New Business Survey –LIMRA CAP –Internally-generated Survey at the service point –Communication on ALL outgoing mail –Results anticipated

23. GLOBAL MONITORING Compliance Committee Monitors all three - agent, home office, and customer

24. COMPLIANCE COMMITTEE Makeup Role Inputs for decisionmaking

25. MAKEUP Marketing Legal Underwriting Customer Service Compliance

26. STRUCTURE/PURPOSE Internal and external measuring Tracking Substantiated Complaints Tracking Exceptions from complaints Oversight Monitoring

27. INPUTS Complaints Underwriter input/Exceptions log Persistency Replacements Hiring practices/exceptions Production

28. MC Oversight Committee A Great idea that has proven successful: –Develop a weighted assessment of agent, considering and assigning scores for such as: Complaints Lapses Replacements/Switching Attendance at training Production Disciplinary Actions

29. MC Oversight Committee Use these inputs to determine the “vulnerability” of an agent for audit or termination Also, can add the “X” factor – an additional set of points because you don’t trust him!

30. PURPOSEFUL OBSERVATION Training Process of PO Results

31. TRAINING Can be classroom-style Can use role-playing Can be OJT

32. FIELD AUDITS Who does it? What products? What is agent reaction?

33. INTERNET MONITORING Use multiple engines –AND Do it often –OR Consider an outside firm –www.markwatch.com

34. WHAT WORKS FOR YOU? QUESTIONS???