Abstract: According to the competitive approach insurance companies must move in a direction that helps them create more added values compared to traditional services and meet the growing demands of customers by considering their diverse and new needs. Meanwhile, the employees of the sale section of insurance companies have the main role in the sale and profitability of corporation; therefore to improve performance, there is a mental pressure on these employees. In some cases, these pressures lead the employees to adopt incorrect and immoral methods to sell more. Thus, the present study investigates the effect of sale ethical behavior on customer loyalty in the Iran insurance industry of Fars province. The participants of the study were those who refer to the Iran insurance industry of Fars province who are usually policyholders and they referred to use and enjoy from insurance services (such as consultation, buying insurance, getting health care costs and damage expenses, etc). Therefore, with regard to the infinity of the community, the sample of this study was selected by cluster sampling using Cochran formula and 447 participants were selected. The purpose of this research is applied and the design of the research is descriptive-analytical correlation. In order to collect data, questionnaire was used. The Kolmogorov-Smirnov test was used to analyze data. To determine the type of data distribution and use of structural equation modeling and analysis of the overall fit of the model and test hypotheses, SPSS21 and LISREL8.8 statistical software was used. The results of the study showed that sale ethical behavior had no positive and significant relationship on customer satisfaction. In addition, the results indicated that sale ethical behavior variable had significant and positive effect on customer trust variable and so were the effect of customer satisfaction on customer trust, the effect of customer satisfaction on customer loyalty and the effect of customer trust on customer loyalty. The statistical analysis between these variables showed that these hypotheses (2-5) were confirmed. Finally, some suggestions for managers and experts of hotel industry have been offered.