Where to go from here: Consumers have shown they may have more faith in insurance products than the industry thought possible. Now insurers must decide how to keep that faith. (Selling Insight Life/Health).

Nearly five months have passed since the Sept. 11 tragedy. While there may be a few exceptions, almost everyone has done the right thing--including the insurance industry. Perhaps that's a little too modest. It's more accurate to say--particularly the insurance industry.

The entire industry stepped up to the plate. On the property/casualty side, a mountain of initial claims was processed instantly. It was the same with the life insurance companies and agents. Red tape was ignored, including the death certificate requirement.

The actions of the insurance industry made a strong statement about both its ability and, even more important, its willingness to meet even the most horrendous of challenges.

In the intervening months, the effects of the industry's posture have become clear. On the one hand, the burgeoning claims have not brought even one company to its knees, although they have taken their toll on the profits of a number of insurers.

No one can dispute that the insurance industry has benefited from the goodwill generated by doing the right thing amid the tragedy. After a long period of painfully flat life insurance sales, it appears that applications have jumped more than 20% for some companies since Sept.11.

We also are seeing higher death benefits than in the past. Does this mean that consumers better understand the need for proper protection? In the same way, long-term-care insurance applications have been mounting since Sept. 11. Why is this happening now, after so many years of attempting to jump-start interest in a product that is so essential to the well-being of so many Americans?

The change cannot be attributed simply to increased advertising. Is it possible that consumers now recognize that they have waited long enough? Perhaps it shows that Americans do understand the value of long-term-care insurance.

It's difficult to discuss publicly what has happened to our business as a result of the terrible devastation of Sept. 11. But to talk about it is not to suggest that we are the benefactors of tragedy. It simply points out the possibility that the public may have more faith in our products than we do ourselves.

I can't help but recall a line from a Woody Allen movie of some years ago. It goes something like this:" The worst thing in the world is spending an hour in a box with the man from Ajax Mutual."

It's a funny line, because it is all too true. Wouldn't it be too bad if consumers failed to purchase our products because of the way we either designed or sold them, or both? Wouldn't it be too tragic if Americans failed to protect themselves financially, simply because they couldn't stomach spending an hour with the salesperson from Ajax Mutual?

Wouldn't it be shameful if those who really want the protection made an inappropriate purchase without he help and counsel of a highly trained, experienced life insurance agent?

There's a message in all this: Our industry is better than we may give it credit, and our products are more desirable than we may have thought possible. This brings the life insurance industry to an interesting juncture. Will we keep faith with the public, or will we attempt to make quiet changes that could undermine consumer confidence?

The decision is up to us as an industry. We can press forward with determination to benefit from today's technology to get rid of the myriad of proprietary forms that are time consuming and costly. Maybe it's also time to end the archaic system of state regulation of insurance. Aside from exorbitant costs--which are paid by consumers -- the complexity of our business cannot be served in ore than 50 state offices.

And then there is the agent issue. Who are we attracting to our industry? In fact, are we attracting very many new agents?

As an industry we have suffered from a lack of credibility--our sales figures prove it. At the most crucial moment in the history of life insurance, we did the right thing. If we continue to do so, we will open the door for more Americans to benefit from the solid protection offered by our products.

It's time to retire the man from Ajax Mutual.

Ronald D. Verzone, a Best's Review columnist, is president of United Underwriters Inc. of Exeter, N.H.