Tennessee Laws and Departmental Rules Common to all Lines

An insurer publishes intimidating brochures that portray the insurer's competition as financially and professionally unstable. Which of the following best describes this act?

Illegal under any circumstances; when a company criticizes the financial situation of another company, with the intention of injuring that company, it has committed an illegal trade practice called "defamation."

which of the following would not be considered an unfair and deceptive practice?

Controlled business; unfair and deceptive practices include: rebating, defamation, and misrepresentation

When a producer was reviewing a potential customer's coverage written by another company, the producer made several remarks that were maliciously critical of that other insurer. the producer could be found guilty of

Defamation

a temp license may be issued by the commissioner for a period not to exceed how many days?

180 days

unless revoked or suspended, how long does a producer's license remain in effect in TN

24 months

How man accounts must the TN Life and Health insurance guarantee association maintain

3 accounts: life insurance, annuities, and health insurance. The association is composed of all insurers who lawfully do business in the state.

within how many days must insurance producers reports changes of address to the commissioner?

30 days

an insurance producer may not act as an agent for an insurer unless he/she has become which of the following?

appointed; an insurance producer may not act as an agent for an insurer unless he/she has been appointed.

All of the following are requirements to be licenesed as an insurance producer in TN except

be at least 21 years of age; an individual applying for an insurance producer's license must be at least 18 yrs of age.

if a producer continues to violate the insurance code, a new civil penalty will be assessed every day

each day of a continued violation constitutes a separate violation

In which of the following situations is it legal to limit coverage based on marital status

never; availability benefits or coverage may not be denied based on sex or marital status. marital status may be considered for the purpose of defining persons eligible for dependent benefits.

all of the following are unfair claims settlement practices except

suggesting negotiations in settling the claim

For the purpose of making an investigation, the commissioner does not have the power to do the following?

they do not have the power to make testimony and documents available to the public; any testimony or doc. obtained for the purposes of making an investigation are privileged.

If an insurer is going to terminate the appointment of an insurance producer, whithin how many does following termination must the insurer notify the commissioner of the termination

30 days; insurers must notify the commissioner within 30 days following a termination. upon written request, the insurer must provide additional information pertaining to the termination.

which of the following is not true regarding prelicensing education requirements for insurance producers in this state?

50 % of prelicensing education must be completed in a classroom. Every individual seeking to be license as an insurance producer must complete an approved online or classroom prelicensing education course of study for each line of insurance requested prior to taking the insurance examination. prelicensing courses must be approved by the commissioner.

no examination is required of a person licensed as an insurance producer in another state who moves to TN as long as the application is made within how many days of establishing legal residence?

90 days; a person who moves to TN from another state and who was a licensed producer in the previous state must make application within 90 days of establishing residency in order to avoid the examination.

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

Illegal; it is illegal to particiapte in any boycott, coercion, or intimidation that is intended to restrict fair trade or create monopoly.