Tennessee Laws and Rules

In Tennessee, the MAXIMUM fine that the Commissioner can impose on a procedure is ___ per violation -$500 -$1,000 -$1,500 -$2,000

-$1,000

How long is a temporary license valid? -45 days -90 days -120 days -180 days

-180 days

An agent needs to complete ___ of continuing education every ___ years -25; 2 -24; 3 -24; 2 -25; 2

-24; 2

Who determines the education credits needed for a producer's continuing education? -the insurer who appointed the producer -National Association of Insurance and Financial Advisors (NAIFA) -the governor -Commissioner of Commerce and Insurance

-Commissioner of Commerce and Insurance

The Tennessee Guaranty Association is subject to review and regulation by the Commissioner. A financial statement must be submitted no later than ___ of each year -January 3rd -February 13th -March 30th -April 30th

-March 30th

If an insurance producer applicant is required to pass a written examination, what is also required? -a fingerprint-based criminal background check -a college degree -applicant is at least 21 years old -the applicant's credit report

-a fingerprint-based criminal background check

Who would qualify for a temporary license in Tennessee? -an individual who has recently failed the state exam -a nonresident producer in another state who wishes to conduct business in Tennessee -a producer with a recently expired license -a surviving spouse of a deceased producer

-a surviving spouse of a deceased producer

Which of the following is the purpose of the Tennessee Guaranty Association? -avoid excessive delay in payment -avoid a loss to policyholders and claimant due to the insolvency of an insurer -charged to distribute the costs of protection to all insurers -all of the above

-all of the above

All of these are considered a producer's breach of fiduciary duty EXCEPT -misappropriation of premiums -conversion of premiums -improper withholding of premiums -allowing premiums to be submitted electronically

-allowing premiums to be submitted electronically

A business entity can be defined as a(n) -agency that must only operate outside of Tennessee -agency that must only operate inside of Tennessee -association or a limited liability company -business that requires approver by the Attorney General to transact business

-association or a limited liability company

Insurance contract may be sold, solicited, or negotiated by an insurance producer ONLY upon -filing an application for licensure -passing the licensure examination -issuance of license -becoming an appointed producer of an insurer

-becoming an appointed producer of an insurer

For a change to a health policy to be valid, what is required? -the producer must approve of the changes -changes in the policy must be approved by an executive officer of the insurer -changes must be notarized by the Commissioner and attached to the policy -the producer must take an affidavit from the policyowner

-changes in the policy must be approved by an executive officer of the insurer

Which of the following is an example of defamation? -making statements that encourage the purchase of term life insurance over whole life insurance -publishing a newsletter that makes reference to reputable brokers in the area -circulating brochures that falsely denounce the financial condition of an insurer -issuing pamphlets containing false information about term life insurance

-circulating brochures that falsely denounce the financial condition of an insurer

Which of the following is NOT a requirement to sell, solicit, or negotiate Long-Term Care insurance? -be a licensed producer for life or health -complete a one-time 8 hour long-term care specific training course -complete 4 hours of long-term care continuing education -complete a one-time 4 hour course on estate planning

-complete a one-time 4 hour course on estate planning

When does the Free-Look provision for health insurance begin? -date of sales appointment -date the policy is delivered to the insured -date the sales appointment was set -date the policy was issued

-date the policy is delivered to the insured

A provision that the policy, application, and all attachments shall constitute the ___ between the parties -grace period -entire contract -notice of claim -proof of loss

-entire contract

How often must the Commissioner examine each domestic company? -every 2 years -every 3 years -every 4 years -every 5 years

-every 5 years

Which of the following would best describe the actions of an insurer who promises the cheapest premium rates in the United States? -rebating -defamation -sliding -false advertising

-false advertising

In Tennessee, an insurer that is incorporated in New Jersey and conducts business in Tennessee is called a(n) -alien insurer -foreign insurer -dual insurer -domestic insurer

-foreign insurer

The Insurance Commissioner is REQUIRED to do which of the following before holding a hearing that could lead to the suspension of a producer's license -give written AND oral notice to the producer -give written notice to the producer -give written AND oral notice to the producer's insurance company -give oral notice to the producer's insurance company

-give written notice to the producer

A Long-Term Care policy sold in Tennessee MUST be -conditionally renewable -optionally renewable -guaranteed renewable -noncancellable

-guaranteed renewable

If a producer commits an act of coercion or intimidation, how would the producer's insurance company be held responsible for this act? -if the insurer only suspends the producer, not terminate -if the insurer reduces the commission level of the producer -if the insurer approves of the act -if the insurer does not make a public announcement of the act

-if the insurer approves of the act

All of these are powers of the Commissioner EXCEPT -hold hearings -enforce insurance laws -incarcerate a producer -issue subpoenas

-incarcerate a producer

A licensed producer can be BEST described as a(n) -someone who places insurance advertisements in a newspaper -underwriting officer of an insurance company -individual who places insurance on behalf of anyone seeking insurance -administrator answering calls for an insurance agency

-individual who places insurance on behalf of anyone seeking insurance

All of these insurance subjects qualify for continuing education credits in Tennessee EXCEPT -taxation of life insurance -motivating producers -estate planning -group health plans

-motivating producers

The Commissioner would like to hold a hearing against a producer. Before the hearing is held, a notice -must be sent by registered or certified mail to the producer's address on file -must be sent to the insurer's home office -must be delivered in person -is not required

-must be sent by registered or certified mail to the producer's address on file

When a Medicare Supplement policy is delivered to a policyholder, which of the following MUST accompany the policy? -producer's address -outline of coverage -insurer's AM best rating -outline of policy-loss ratios

-outline of coverage

An individual health insurance policy is REQUIRED to contain a(n) -subrogation provision -payment of claims provision -other insurance provision -waive of premium provision

-payment of claims provision

XYZ Corp was issued a group Accident and Health Policy for its employees. Under this plan, a -certificate must be issued to XYZ and a policy must be issued to each employee -certificate must be issued to XYZ and each employee -policy must be issue to XYZ and a certificate must be issued to each employee -policy must be issued to XYZ and each employee

-policy must be issue to XYZ and a certificate must be issued to each employee

J applies for an insurance policy. What BEST describes the particular terms of this policy? -AM best statement -policy summary -provisional page -buyer's guide

-policy summary

The Tennessee Insurance Guaranty Association -is regulated by the National Association of Insurance and Financial Advisors (NAIFA) -is an agency of the federal government -has voluntary membership from admitted Tennessee insurance companies -protects Tennessee insurance policyowners in the event an insurance company becomes insolvent

-protects Tennessee insurance policyowners in the event an insurance company becomes insolvent

Which of these is NOT a fair marketing practice when an existing insurance policy is being replaced? -offer the same coverage for a lower price -reduce the cost by lowering the commission -reduce the cost by raising the deductible as long as the insured is notified -offer better coverage for the same price

-reduce the cost by lowering the commission

All of these statements regarding referrals are true EXCEPT -the Commissioner may establish by rule a maximum amount for each referral -the person making the referral may not discuss the specific policy terms and conditions -referral fees may not be tied to the purchase of insurance -referral fees must be filed and approved with the Commissioner of Insurance

-referral fees must be filed and approved with the Commissioner of Insurance

An insurance producer could be found guilty of rebating by -offering better insurance coverage to an existing policyholder -sharing commissions with a client who has purchased insurance -recommending a policyholder convert existing term life insurance to an individual whole life policy -offering a discount for a client being a nonsmoker

-sharing commissions with a client who has purchased insurance

Which of the these is a valid Tennessee regulation for referral fees? -referral fees can be unlimited in amount -if the referral sale involves replacement, the Notice Regarding Replacement form is not required -referral fees may only be paid in the event a policy is purchased -the Commissioner may establish by rule a maximum amount for each referral

-the Commissioner may establish by rule a maximum amount for each referral

What authority does the Commissioner have over Tennessee producers? -the Commissioner may mandate the financial restructuring of insolvent insurers -the Commissioner may levy fees on policy applications to defray operating costs -the Commissioner may establish guidelines for continuing education as a part of the producer license renewal procedure -the Commissioner may require adjacent states to adopt reciprocal agreements for nonresident producer licenses

-the Commissioner may establish guidelines for continuing education as a part of the producer license renewal procedure

When a life insurance application is completed, a Policy Summary must be given to the applicant. The policy summary MUST include -the insurer's AM best rating -the producer's address -cash value rate -the premium cost for basic coverage applied for

-the premium cost for basic coverage applied for

P's individual health policy is now in the grace period. P's coverage will remain in force if -no claim is presented -the premium is paid -the insured proves insurability -the insured does not leave the state

-the premium is paid

A producer MUST leave a buyer's guide with an applicant for which type of policy? -group life insurance -annuity -universal life insurance -credit life insurance

-universal life insurance