Tennessee General Regulations

What is a business entity?

"Business entity" means a corporation, association, partnership, limited liability company, limited liability partnership, or other legal entity. The correct answer is: A corporation, association, partnership, limited liability company, or other legal entity

What is the minimum age to become a licensed producer in Tennessee?

A licensee must be at least 18 years of age. The correct answer is: 18

A person licensed as an insurance producer in another state who moves to Tennessee must apply to become a:

A person licensed as an insurance producer in another state who moves to this state will make application within 90 days of establishing legal residence to become a resident licensee. No prelicensing education or examination will be required of that person to obtain any line of authority previously held in the prior state. The correct answer is: Resident licensee

All money a producer receives for conducting insurance business shall be held in a/an:

All money a producer receives for conducting insurance business shall be held in a fiduciary capacity. The correct answer is: Fiduciary capacity

What type of insurer is formed under the laws of anyplace outside the United States?

An alien insurer is one formed under the laws of any place outside the United States. The correct answer is: Alien

Is a nonresident who applies for an insurance producer license in Tennessee required to complete any prelicensing education or examination?

An individual who applies for an insurance producer license in this state who was previously licensed for the same lines of authority in another state will not be required to complete any prelicensing education or examination. The correct answer is: Not if he/she was licensed for the same lines of authority in the other state

Which of the following answers best describes the compensation an unlicensed individual may receive from an insurer or insurance producer for conducting insurance business for which a license is required?

An insurer or insurance producer may not pay a commission, service fee, brokerage fee or other valuable consideration to a person for selling, soliciting or negotiating insurance in this state if that person is required to be licensed and is not licensed. The correct answer is: The unlicensed individual may not receive any compensation for conducting the business of insurance if they are required to be licensed for that business.

What is defamation?

Defamation is defined as: "Making, publishing, or circulating, directly or indirectly, or aiding the making of any oral or written statement or any pamphlet, circular, article or literature that is false, or maliciously critical of or derogatory to the financial condition of any insurer, and that is calculated to injure the insurer." The correct answer is: Making an oral or written statement that is maliciously critical or calculated to injure another insurer

How many hours of continuing education courses are required to renew a license each licensing period?

Every individual seeking biennial renewal of a license, unless exempt, must satisfactorily complete 24 continuing education credit hours of study in approved courses, programs of instruction or seminars every 2 years following the date of issuance of the original license. The correct answer is: 24 hours

Who is exempt from the pre-licensing education requirements?

Persons holding a CFP, FLMI, or CEBS designation are exempt from prelicensing education requirements. The correct answer is: All of the above

Which of these is NOT an example of unfair claims settlement practices?

Requesting further information for a claim is a part of the claim process and NOT an unfair claim settlement practice. The correct answer is: Requesting further information for a claim

Who/what is not eligible for a temporary insurance producer license?

The Commissioner may issue a temporary insurance producer license to any person in an extenuating circumstance where public interest will be best served. The correct answer is: A situation where issuing the insurance license does not best serve the public interest

An individual's license can be suspended or revoked if they do business with unlicensed individuals and:

The Commissioner may suspend or revoke the license of an individual who sells, solicits or negotiates insurance for a company that is not authorized to transact the business of insurance in this state. The correct answer is: Companies that are not authorized to transact the business of insurance in Tennessee

Documents and other evidence obtained by the Commissioner in an investigation are:

The Commissioner must have inquisitorial powers and be empowered to subpoena witnesses and examine them under oath; provided, that all testimony, documents and other evidence obtained by the Commissioner is privileged and not admissible as evidence in any private civil proceeding. The correct answer is: Privileged and confidential

Who has the authority to enforce the insurance laws of Tennessee and impose any penalty or remedy authorized against any person who is under investigation for or charged with a violation of insurance laws or regulations?

The Commissioner retains the authority to enforce laws and impose penalties against those in violation of insurance laws or regulations in Tennessee. The correct answer is: The Commissioner

The Insurance Commissioner must suspend, deny or revoke a license of any individual who has defaulted on their repayment or service obligation for:

The Insurance Commissioner must suspend, deny or revoke a license of any individual who has defaulted on their repayment or service obligation for any state or federal educational loan. The correct answer is: Educational loan

An agent offering to waive the prospective client's first life insurance premium is engaging in which of the following unfair practices?

The agent is engaging in rebating, which is permitting to make a contract of insurance other than as plainly expressed in the contract. The correct answer is: Rebating

The protection provided by the Tennessee Life and Health Insurance Guaranty Association is based on:

The protection provided by the Tennessee Life and Health Insurance Guaranty Association is based on Tennessee law and the language of the insolvent company's policies at the time of insolvency. The correct answer is: Tennessee law

The Commissioner must issue a license to Larry for a nonresident producer license in Tennessee if all of the following conditions have been met, EXCEPT:

The terms of application and procedures for nonresident licensees in Larry's home state are similar to the terms and procedures in Tennessee. The correct answer is: The application and procedures for Larry's home state are different from the terms and procedures in Tennessee.

How much time does the Commissioner have to determine the eligibility of a producer appointment?

Upon receipt of the notice of appointment, the Commissioner must verify within a reasonable time (not to exceed 30 days) that the insurance producer is eligible for appointment. The correct answer is: 30 days