Minority Disparity in Florida Licensing Exam

Financial Literacy Coalition Urges CFO Sink to Look Into State Insurance Exams

WASHINGTON, May 11 /PRNewswire-USNewswire/ -- In a statement Monday, the
Coalition for Financial Security (CFS) urged Florida Chief Financial Officer
Alex Sink to look into the results of the latest state report showing that
African American and Hispanic test-takers passed the state's life insurance
licensing exam at rates below other demographic groups.

Concerned that the report is reminiscent of last year's data and mirrors other
statistics showing middle-class and minority communities lacking qualified,
financial professionals, the financial literacy organization urged the CFO to
investigate the matter before another year passes.

"CFO Sink has been a strong champion for financial literacy, and addressing
these disparities is another way she can continue that work and help more
families get ahead," said CFS Advisory Board Member Raul Yzaguirre. "Aspiring
financial professionals like those taking this test can be important advisors
in their communities. We ought to find out why some communities are falling
behind others when it comes to receiving a license."

The Florida report, covering calendar year 2008, was released last week. The
report shows that 51.7 percent of White test-takers (1046 of 2024) passed the
state licensing exam last year. This rate compared to 32.4 percent of African
Americans (536 of 1652) and 34.6 percent of Hispanics (657 of 1900).

The 2008 report was the second annual report to show such disparities.

Also notable in the latest report, according to the Coalition, was the table
comparing education level and pass rates. Even with the state mandated 40
hours of pre-test study, individuals with a graduate degree passed the exam at
a rate of only 54 percent last year. The pass rate for those with some college
experience or those with high school diplomas was even lower, bringing
Florida's overall pass rate to 39.9 percent (2490 of 6239).

As reference, the state of Illinois's 2007's demographics report showed an
overall pass rate of 80 percent (7639 of 9549), with those who had a college
degree or more passing at 88 percent. Illinois requires 15 hours of
pre-licensing study.

"The CFO's office has been monitoring these numbers for some time," said
Venable AttorneyRandolph Sergent, an attorney adviser to CFS on insurance
licensing reform issues. "While the state continues to collect information,
the data that is coming in suggests reason to be concerned that members of
minority communities in Florida may have a higher hurdle to overcome in order
to enter the financial services profession. One way to champion the cause of
financial security is by looking at the reasons for disparities, why there has
been little difference in the numbers for the last two years, and what can be
done to see more success from all communities and education levels."

CFS was formed in 2005 in the wake of Hurricane Katrina by a number of
organizations and individuals concerned about the growing divide between
working-class and wealthy Americans' level of financial security. The
coalition's mission is to educate policy makers, financial providers about
this divide and to advocate for effective solutions.

In addition to new policies to increase financial literacy by teaching finance
in public schools, CFS supports new solutions that will address a shortage of
financial experts in middle-class and minority communities.

Statistics, including a 2005 survey by CFS and LULAC, show that in some
communities, there are not enough financial experts who can help their
neighbors learn about and secure important financial tools such as 401(k)s,
bonds, stocks and life insurance protection. The 2005 CFS/LULAC poll found
that two-thirds of white respondents had some life insurance, compared to
roughly half of African American and Hispanic respondents.

The survey suggested that one reason for the disparity was that minority and
middle-class respondents did not know anyone who sells life insurance, and had
never been contacted about it.

"There are a number of reasons that so many Americans are struggling to
achieve financial security," said former New York City MayorDavid Dinkins,
another member of the CFS advisory board. "The public, private and non-profit
sectors must all do their part. We need more financial education, more
recruitment and retention of financial professionals by the financial
industry, and more attention to this problem by public officials."

For background on CFS, visit the coalition's website at
www.coalitionforfinancialsecurity.org

For copies of the Florida reports, visit
www.fldfs.com/agents/Industry/News/docs/Life-Ins-Exam-Annual-Report.htm

SOURCE Coalition for Financial Security

Jeremy Van Ess of Coalition for Financial Security,
info@coalitionforfinancialsecurity.org, +1-800-526-2234