Tennessee Laws And Rules Common To All Lines Quiz

Illegal.

An insurer devises an intimidation strategy in order to corner a large portion of the insurance market. Which of the following best describes this practice? A. A legal advertising strategy. B. Unfair Discrimination. C. Defamation. D. Illegal.

18 years old.

What is the minimum required age for an insurance producer in this state? A. 17 years old. B. 18 years old. C. 21 years old. D. 23 years old.

Making derogatory oral statements about another insurer's financial condition.

Which of the following best describes an unfair trade practice of defamation? A. Refusing to deal with other insurers. B. Making derogatory oral statements about another insurer's financial condition. C. Assuming the name and identity of another person. D. Issuing false advertising material.

A business entity.

Which of the following may obtain a producer's license, but may NOT sell, solicit, or negotiate a contract of insurance in Tennessee? A. A business entity. B. A nonresident producer. C. An applicant for an agency contract license. D. An applicant for a limited lines license.

20.

A candidate for Life insurance producer's license must complete how many hours of prelicensing education? A. 20. B. 5. C. 10. D. 15.

Limited Lines Producer .

A producer authorized to offer insurance on personal effects carried as baggage or limited travel accident insurance sold in connection with transportation provided by a common carrier is known as which type of producer? A. Uniform Applications Producer. B. Limited Line Credit Producer. C. Surplus Line Producer. D. Limited Lines Producer.

Rebating.

An agent offers his client free tickets to a sporting event in exchange for the purchase of an insurance policy. The agent is guilty of. A. Twisting. B. Controlled business. C. Rebating. D. Coercion.

30 days.

If an insurer is going to terminate the appointment of an insurance producer, within how many days following termination must the insurer notify the Commissioner of the termination? A. 45 days. B. 60 days. C. 15 days. D. 30 days.

Discrimination.

Two individuals are in the same risk and age class; yet, they are charged different rates for their insurance policies due to an insignificant factor. What is this called? A. Misrepresentation. B. Adverse selection. C. Discrimination. D. Law of Large Numbers.

Is not allowed, for whatever reason, to transact insurance business in the State of Tennessee.

An unauthorized insurer is one that. A. Is located in the State of Tennessee but is incorporated under the laws of another state. B. Is not located in the State of Tennessee. C. Is not allowed, for whatever reason, to transact insurance business in the State of Tennessee. D. Is allowed to offer advice to a purchaser of insurance, but is not allowed to write an insurance contract.

Make testimony and documents available to the public.

For the purpose of making an investigation, the Commissioner does NOT have the power to do which of the following? A. Make testimony and documents available to the public. B. Subpoena witness. C. Examine witness under oath. D. Obtain evidence in the form testimony and documents.

The Commissioner may do any of these.

If a producer is found to have committed any unfair trade practice or fraud, what may the Commissioner do? A. The Commissioner may place the producer on probation. B. The Commissioner may refuse to renew the producer's license. C. The Commissioner may do any of these. D. The Commissioner may levy a civil penalty against the producer.

All of the above may happen.

If an individual licensee's violation of the insurance code was known or should have been known by one or more of the partners, officers, or managers of the agency, what could happen to agency? A. The agency's license may be suspended. B. The agency's license may be revoked. C. The Commissioner may hold a hearing to determine if a violation was committed. D. All of the above may happen.

An agent uses misrepresentation to convince a person to cancel an existing policy and take a new policy from him.

Rebating is an unfair trade practice and is regulated by law. All of the following would be considered to be rebating EXCEPT. A. An agent offers tickets to a baseball game as an inducement to buy insurance. B. An agent uses misrepresentation to convince a person to cancel an existing policy and take a new policy from him. C. An agent offers the use of his lake house to person as an inducement to buy. D. An agent offers to share his commission with a policyholder.

24 months.

Unless revoked or suspended, how long does a producer's license remain in effect in Tennessee? A. 48 months. B. 6 months. C. 12 months. D. 24 months.