Tennessee Governor Bill Lee signed SB 1369 into law on March 21, 2023, making Tennessee the 24th state to eliminate producer pre-licensing mandates. NAIFA-Tennessee applauds and thanks bill sponsors Senator Steve Southerland and Senator Ken Yager for carrying the legislation. NAIFA-Tennessee worked hard on the ground to educate lawmakers on the positive change this will be for increasing producer recruitment.
Pre-licensing education mandates serve as an unnecessary barrier for new producers entering the industry and potentially have a disproportionate impact on minority candidates. They have no discernable benefit. NAIFA strongly supports states maintaining high standards of knowledge and professionalism for producers entering the industry. Prospective producers must demonstrate the necessary knowledge required to obtain an insurance license.
Insurance licensing exams remain the most important and valid component for testing adequate knowledge for licensing, separating the qualified from the unqualified. Of the now 24 states that have removed pre-licensing education barriers, none report an adverse impact on exam passing rates or exam scores.
Pre-licensing education reform is just one aspect of broader efforts to remove unnecessary barriers and encourage people from all backgrounds, nationalities, and socioeconomic classes to embark on rewarding careers in financial services. NAIFA has partnered with colleagues to publish a Workplan to Identify and Remove Unnecessary Barriers to Producer Licensure.
