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Life Health > Running Your Business > Certification

All States Should Offer Online Life Agent Exams, Industry Groups Say

By Allison Bell

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All states should offer online exams for would-be life insurance and annuity agents and brokers, to help all kinds of individuals join the industry, insurer and producer groups told state insurance regulators Tuesday.

The number of states offering online testing increased to 46 in 2023, from just five in March 2020, when the COVID-19 pandemic began, the groups reported in a position paper submitted to the National Association of Insurance Commissioners’ Producer Licensing Task Force.

But three states have now dropped online testing options, pulling the number offering online testing down to 43, the groups said.

Backsliding on online testing will hurt would-be producers who live far from testing centers or have work or family obligations that make online testing a better fit, they added.

A team at the American Council of Life Insurers developed the position paper together with the National Association of Insurance and Financial Advisors and Finseca. Members of the Producer Licensing Task Force talked about the paper Tuesday in Chicago, during a session at the NAIC’s summer national meeting.

What it means: The ACLI, NAIFA and Finseca could persuade state insurance regulators to make changes that will help agents get and keep the credentials needed to help clients with life insurance and annuities.

Pass rates: The ACLI, NAIFA and Finseca also talked about concerns that some state testing programs may have pass rates that are lower than they should be.

The overall pass rate for first-time test takers in a typical state seems to have fallen to less than 60% in 2022, the latest year for which figures are available, down from more than about 65% in 2018, according to maps the groups compiled from state and vendor reports.

At least one testing vendor has recommended that states use pass rates to determine whether tests are difficult enough, the groups said.

The vendor’s approach could be herding states toward lowering pass rates, the groups said.

Credit: Gorodenkoff/Adobe Stock

Allison Bell

Think_Allison

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