An analysis of some of the prerequisites essential for a successful career as a life insurance agent

382 Pages·013.955 MB·English

by  Mortensen, Donald Grant

AN ANALYSIS OF SOME OF THE PREREQUISITES
ESSENTIAL FOR A SUCCESSFUL CAREER
AS A LIFE INSURANCE AGENT
A Dissertation
Presented to
the Faculty of the School of Education
University of Southern California
In Partial Fulfillment
of the Requirements for the Degree
Doctor of Education
by
Donald Grant Mortensen
June 1950
UMI Number: DP25784
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Dissartaton PUbiisNngg
UMI DP25784
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This dissertation} written under the direction
of the Chairman of the candidate’s Guidance
Committee and approved by all members of the
Committee} has been presented to and accepted
by the Faculty of the School of Education in
partial fulfillment of the requirements for the
degree of Doctor of Education.
Date.—j^r
Dean
Guidance Committee
Chairman
TABLE OF CONTENTS
CHAPTER PAGE
I. THE PROBLEM AND DEFINITIONS OF TERMS USED . 1
The problem........................... 2
Statement of the problem . . . . . . . 2
Scope of the study................... 3
Importance of the s t u d y .............. 5
Definitions of terms u s e d .............. 12
Ordinary life insurance.............. 12
Full time life insurance agent........ 13
Manager or general agent .............. 13
Apprentice agent .................... 13
Career agent ......................... 14
Straight commission.........'........ 14
Straight salary ..................... 14
Salary and commission................ 15
Advance............................. 15
Drawing account..................... 15
Incentive earning or effort plan . . . . .16
Organization of the s t u d y .............. 16
Introductory chapters .............. . 16
Central chapters ..................... 17
Final chapters....................... 17
II. REVIEW OF RELATED INVESTIGATIONS.......... 19
iii
CHAPTER PAGE
History of the occupation........ 19
Historical introduction . .......... 19
The a g e n t ...................... 21
Organizations concerned with improvement
of occupation . ........... 24
Census of agents................ 26
Criteria of success employed by various
research workers............... 27
Problems in determining agent's earnings,
as related to success........ 31
Earnings and success............ 32
Survival and success............... . . 35
Situational factors and survival . . . . 36
Personal history items as related to
success...................... 37
Selection techniques and instruments . . . 40
Principal techniques . . . . . . . . . . 40
Tests used...................... 41
Critique of related investigations . . . . 45
Summary........................ 47
III. SOURCES OF MATERIAL AND PROCEDURE.. 50
The method of research employed ........ 50
Selection of the participants.... 55
iv
CHAPTER PAGE
Selection of criterion groups of active
and terminated apprentice agents . . . 55
Selection of criterion groups of active
and terminated career agents * . . . . . 6l
Selection of the jury used in the
validation of the proposed criteria
I
of success of the apprentice agents . 62
Descriptions of instruments and
techniques used .............. 63
Standardized tests as a source of data . 63
Mental ability tests selected.
The Wechsler-Bellevue Intelligence
Scale for Adolescents and Adults . . 66
Personality tests selected.
The Minnesota Multiphasic Personality
Inventory.................. 66
Rosenzweig P-F Study, Revised for
Adults...................... 67
Interest test selected.
Strong Vocational Interest Test . . . 68
Special life insurance sales aptitude
tests selected.
Aptitude Index to Measure Aptitude for
CHAPTER PAGE
Life Insurance Selling .............. 69
Steward - Personal Inventory of Basic
Factors......................... 70
Personal history information ............ 72
Personal Background Inventory ........ 73
Production record form . ................ 74
Termination form, for agents and
managers................... 74
Miscellaneous forms obtained from
agencies........................... 74
Interview........................... 75
Questionnaires to active and terminated
career agents ..................... 76
Letter to jury .............. 76
Miscellaneous ........................ 76
Collection, analysis, and interpretation
of d a t a ............................. 77
Collection of data.
Apprentice agents .................. 77
Career agents ...................... 79
Tabulation of all data.................. 80
Pattern of analysis.................... 80
Interpretation of data.................. 82
Summary of the chapter.................. 83
VI
CHAPTER PAGE
IV. ASSUMPTIONS AND HYPOTHESES OF THE STUDY. . . 85
Assumptions of the study.......... 85
Hypotheses of the s t u d y .......... 87
Summary ...................... 88
V. CRITERIA OF SUCCESS AS APPLIED TO
APPRENTICE AGENTS ..................... 90
The problem and procedure.......... 90
Development of criteria of success . . . . 91
Criteria of success listed by other
investigators ...................... 91
Gross volume of sales (production) of
active and terminated apprentice
agents......................... 92
Trend of sales................... 93
Determination of monthly earnings . . . 97
Determination of amount of monthly
payments received............. 98
Compensation plan in which agents were
employed....................... 99
Determination of amount of cost of
living requirements ................ 101
Interrelationships of monthly earnings,
payments received, and cost of
living requirements . ^ ............ 102
r •
* . 9 -
vii
CHAPTER ?AOiE
Length of service of terminated
apprentice agents.................. 105
Relation of effort and training
achievement to success............... 107
Relation of success and managerial
assignments....................... 109
Suggested criteria . 109
Validation and application of criteria
of success.............................. 112
Ratings by j u r y ........................ 112
Applications of ratings of success . . . 113
Evaluation of criteria ................ 118
Summary......... 119
VI. FOLLGW-UP STUDY OF ORE HUNDRED FIFTY
CAREER AGENTS . ...................... 121
Problem and procedure . 121
Introduction and background setting . . 121
Technique.............................. 122
Present status of participants .......... 123
Occupational status.................. 123
Financial status of responding career
agents................................ 128
Factors related to success ................ 131
■v
viii
CHAPTER PAGE
Introduction ......................... 131
Personal history information.
A g e ............................... 132
Education......................... 134
Organizational memberships .......... 135
Marital status ..................... 136
Health............................. 136
Test scores......................... 138
Contributing and handicapping factors
related to success of active
career agents ...................... 141
Summary of findings concerning the
patterns of success indicated by a
follow-up study of 150 career agents . . 142
Findings concerning present status of
150 agents reported as earning
a living in 1933 ....................
Findings concerning present status of
fifty-two respondents reported as
earning a living in 1933 ............ 145
VII. APPRENTICE AGENTS' TEST DATA.............. 149
Determination of mental ability- of the
*
apprentice agents .................. 150