Group Criticizes Agent Licensing Programs

By NU ONLINE NEWS SERVICE

Published 11/11/2009

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States should make sure their agent licensing programs are fair, an interest group says.

The Coalition for Financial Security, Washington, is talking about exam fairness in connection with the 25th anniversary of a lawsuit settlement involving Golden Rule Insurance Company, Indianapolis.

Golden Rule argued in the lawsuit that the life insurance licensing exam in Illinois was racially biased, according to the CFS, Washington.

A recent CFS survey found “double-digit racial disparities” in passing rates for state life insurance licensing exams, the group says.

In some states, candidates with advanced degrees fail more than 40% of the time, and 94% of the states surveyed have life exam passing rates below the 70% level recommended by the National Association of Insurance Commissioners, Kansas City, Mo., in its licensing handbook, the CFS says.

Many states “may have unintentionally permitted their insurance exams to become artificial barriers to entry into the insurance profession," the CFS says.

The CFS notes on its website that supporters include the Congressional Black Caucus Foundation; the American Council of Life Insurers, Washington; and MetLife Inc., New York.

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- 11/12/2009 5:13:14 AM
- Charles Lowenstein
- Insurance exam
- Please explain how an insurance licensing exam can possibly be racist? What is racist about the difference between term and whole life? What is racist about anti-twisting statutes? What is racist about the difference between par and non-par policies; stock and mutual companies? How can one inject racism into the facts?
- 11/12/2009 9:46:52 AM
- Andrew
- Agent licensing is too easy!
- I recently became a licensed life/heath provider in Pennsylvania. I found that the process was amazingly easy. If anything, we should increase the difficulty and add steps to teach more about the industries from which we are attempting to gain a license. I believe that recent times have shown us that we shouldn't have just anyone representing our personal finances.
- 11/12/2009 4:21:50 PM
- John
- Licensing Programs
- The licensing tests should be more difficult and current.We are letting far too many people into our business that have only sound byte knowledge. As for tests being racist, how could they be, it's like a math test, you put forth effort and study you pass. You don't study you fail. Color has nothing to do with effort, it's mindset.
- 11/14/2009 11:52:15 PM
- KJ Cole
- agent Licensing
- Most states that we operate in have a HIGH pass rate on the exam and they all seem to be outsourced. I believe the outsourced agencies get compensation for the harder testing and fewer people passing the tests. It just does not seem fair, especially after taking classes or online prep.