Last year, we showed how state licensing regulations could change overnight simply because a new vendor administers licensing tests. In that case, it got more difficult to get an insurance license in Ohio when a new tester came to town. This month we will look at individual states.
The chart below shows the first-time pass rate on the Life Insurance agent exam in Florida. As the chart shows, one out of two testers passes the exam the first-time. For comparison, in states like New Jersey, Illinois or Tennessee, the pass rate approaches 70 percent. At points last year in Florida, the pass rate dipped into the mid-40s.
Why do we see these differences in exams that are essentially measuring the same thing? Are would-be agents in New Jersey or Tennessee smarter than would-be agents in Florida? Doubtful. Do the states have different regulatory hurdles for the same profession? Apparently they do.
The key question going forward are 1) should they; and 2) what is the impact on consumers? These are questions that CFS continues to explore.