Tennesse laws and departmental rules common to all lines

previosly licensed

not required to complete any prelicensing education or examination. only if the person is licensed in that state or if the application is recieved within 90 days of teh cancellation make applications within 90 days of establishing legal residence ot become a resident licenss.

Exempt

not subject to an obligation

discrimination

not to be made on marital status, race, origin, gender, secual orientation, creed or ancestry

reasons for suspendsion revoksion or refuse to issue or renew a licence

obtaining or attempting to obtain a license through misrepresentation or fraus

commission

payent to teh agent by teh insurance company for placing insurance usually a percentage of the policy premium

Exceptions

not required of any officer, director or employee of an insurer or organization employed by insurers. provided they do not directly or indiredly involved with sale and do not receive any commion

Penalties

-for unitentional vialations, up to 1,000 for each vilation not to exceep 100,000 for intentional violation up to 25,000 for each violation not to exceed a total of 250,000

reasons for suspendsion revoksion or refuse to issue or renew a licence

-provide incorrect missleading incomplete or untrue information in teh licence application

nonrefundable application fees for producers

$50 for the filing of an application for insurance producer license or limited lines producer license $60 for the renewal of an insurance producer license $30 for the renewal of a limited lines producer licence and $15 for the appointment or termination of appointment of an insurance producer by an insurer

what the commissioner may issue

-A cease and desist order, requiring the person to stop committing the violation -fine of up to 1000 per violation not to exceed 10000 suspension or revocation of the person's license

COntinueing edu

24 credit hours of continuiign educaiton by teh end of every 2 year. 3 hours must pertain to ethics

Statuatory

Enacted or regulated by a sttute

Rebating

any inducement offered to the insured in teh sale of insuracnce prodducts that is not specified in the policy. -rebates of premiums payable on the policy -special favors or services advantages in teh dividendns or other benefits stock, bonds securities and their dividends or profits

Business entity

a corporation, association, partnership, limited liability company, limited liability partnership, or other legal entity

not required to hold an insurance license

a director or employee of an insurer whose activities are limited to executive, administrative, managerial , or clerical -the director or employee of a special agent assisting insuance producers by providin gtechnical advies and assistance to licensed insurance producers -a person who secures and furnishes info for group insuance or performs administrative services related to mass0marketing property and casualty insurance

statute

a formal written law enacted by legislature; insurance statutes can be found in the state insurance code

reciprocity

a mutual interchange of rights and privileges

Limited lines producer

a person authorized by teh commissioner to sell, solicit or negotiate limited lines insuranc

solvency

ability to meet financial obligations

commisioner of insurance

acts as the head of the state department of insurance. duties are -conducting legal hearings regarding suspected violations of the insurance Code, - issuing cease and desist orders, -examining insurers for sovency -isuing renewing, suspending, and revoking licenses -certificates of authority

rules

all investigations must be completed 2 years of receiving a complaint. withing 30 days of completion of an ivestigation or closure of a complaint file the commissioner must provide notice of completion to teh person being investigated. all actions must begin within 5 years of the date that teh commissioner was notifed of the cause of the action

nonresident producer

an individual who is domiciled and licensed as a resident producer in a state other than Tennesse

agency contract

an insurance agent represents teh insurer and not the insured.

compensation

an insurer or insurance producer may not pay a commission, service fee, brokerage fee, other valuable consideration to a person for selling, soliciting , or negotiating insurance in this stae

inducement

an offer that attempts to influence the other party

subpoena

an order for someone to appear as a witness or submit testimony or evidence

unfair utilization of proprietary info

any info contained in apolicy app and or obtained in the servicin gof such a policy of insuance cannot be used for the purpose of soliciting any form of insurance except when permission is granted by teh commissioner

False advertising

can not include any untrue, deceptive, or misleading statements that apply to teh business of insurance or anyone who conduct it. prohibited to circulate materials that are untrue, deceptive, or misleading -terms,benefits, conditions, or advantages of any insuracne policy -any dividends to be received from the policy or previously paid out -financial condition of any person or the insurance company -the true purpose pf am assignment or loan against a policy representing an insurance policy as a share of stock or using names or titles that may misrepresent the true nature of a policy also will be considered false advertising

casualty

coverage against legal liability

accident and health or sickness

coverage for sickness, bodily injury or accidental death and disability income

property

coverage for the direct and consequential loss or damage to property of every kine

Life

coverage on human lives

variable life and variable annuites

coverage under variable lie and or variable annuities

terminates the appoinment, employment, contract, or other insurance business relationship

must notify the commissioner within 30 days. within 15 days after making the notification teh insurer must maill a copy of the notification to the producer at teh prodcer's last known address by certified mail, return receipt requested, postage prepaid, or by overnight delivery using a nationally recognized carrier

if it is deemed that the temporary license is necessary for the servicing of an insurance business in the following cases

death or disability of a licensed producer, to teh surviving spouse, a court appointed personal representative or a member of a business entity. the license is issued to allow adequate tim efor teh sale of teh insurance business owned by the producer or for the recovery or return of the producer to the business or to provide for the trainin gand licensin gof new personnel to operate teh producer's business in case a agent is entering active U.S military service in any oter circumstatnce wherer the commissioner deems that public interest will best be served by teh issuance of this licence

credit

debt insurance

commissioner's role

enforce insurance laws and to protect the public from unfair trade practices. may issue a statement of charges and hold ahearing for any purpose deemed necessary

Fiduciary

exercise the same degree of care as would be expected from a reasonable, prudent, and competent professional in the field. is someone in a position o ftrust. it is illegal for insurance producers to commingle premiums collected from the applicants with their own personal funds

reasons for suspendsion revoksion or refuse to issue or renew a licence

failing to comply with an administrative or court order imposing a child support or alimony obligation

reasons for suspendsion revoksion or refuse to issue or renew a licence

failing to make satisfactory repayment to the Tennessee student assistance corpoation STAC or a guarantee agency for deliquient or defaulted student laon

waiver of license renewal

failure to comply with such renewal procedures usually military service or some other extenuating circumstance

5 days

for commissioner to notify insurer of ineligible prodcer

30 days

for commissioner to verify producer is eligible for appointment

15 days

for insurer to file notice of appoinment

90 days

for new resident licensed in previous state to apply for resident license

coercion

forceful act or threat aimed to influence a person to act against his or her will

reasons for suspendsion revoksion or refuse to issue or renew a licence

forging another's name to an app or any document

Regulatoory authority

has the authority to enforce the provisions of the insurance code and impose any penalty or remedy against any person

License requirements

has to be licensed for the appropriate lines of authority.

reasons for suspendsion revoksion or refuse to issue or renew a licence

having admitted or been found to have committed any insurance unfair trade practice or fraud

reasons for suspendsion revoksion or refuse to issue or renew a licence

having an insuracne producer license denied, suspended or revoked in any other state

reasons for suspendsion revoksion or refuse to issue or renew a licence

having been convicted of a felony

lapse

if license lapse it may be reinstate the same license without needing to take a written exam within 12 months from the due date of the renewal fee. however a penalty in teh amount of double the unpaid renewal fee is requied for any renewal fee received after teh due date

reasons for suspendsion revoksion or refuse to issue or renew a licence

improperly using notes or any other reference material to complete an examination for an insurance license

reasons for suspendsion revoksion or refuse to issue or renew a licence

improperly withholding, misappropriating or converting any moneys or properties received in teh course of doing insurance business

domestic

incorporated in this state.

foreign

incorportated in another state

surplus lines

insurance not available from authorized insurers; placed with nonadmitted insurers who specialize in offering insurance to high-risk market

Authorized insurer

insurer who has received a certificate of Authority from the department of insurance to transact insurance in this state

Boycotting

intended to restrict fair trade or to creat a monopoly

reasons for suspendsion revoksion or refuse to issue or renew a licence

intentionally misrepresenting the terms of an insurance contract or application

complies with the following

is at least 18, has not committed any act that is ground for denial, suspension, or revocation, where required by the commissioner by rule, has completed a prelicensing course of study for the lines of authority for which the person has applied, has paid the application fees has successfully passed the examination for the lines of authority for which the person has applied

once the department of insurance receives an inquiry or a complaint

must provide the person with a copy of the order or complaint within 30 days. must also notify the person that any statements form the person may be used in an investigation or beome evidence in hearing

personal lines

noncommercial property and or casualty coverage

reasons for suspendsion revoksion or refuse to issue or renew a licence

knowingly accepting insurance business from an individual who is not licensed

reasons for suspendsion revoksion or refuse to issue or renew a licence

knowingly directing any person to submit an application for health care benefits through the TennCare program if a person is covered by a group policy or when the policy is being renewed, and then quotin ga rate for a group health insurance policy when the insuance producer knows the person would otherwise have been eligible to participate or continue particpation in the group policy

Maintaining a licence

last 24 months. will not be renewed unless teh insurance producer has completeed all condinue ed requiremtn

maintain 3 separte accounts

life insurance annuities health insurance

Failure to maintain complaint handling procedures

maintain a complete record of all the complaints they recieve since the date of teh insurers last exam. must indicate the number of complains, classification by line of insurance, the nature of each complaint, the disposition of each complaint, and the time it took place

changing classification and rate after policy expiration or renewal

making a change in classification or rates more than 1 year after the renewal or expiration date of that policy without the the written consent of the insured. this provision does not apply when the insured has failed to cooperate, given misleading info

Temporary insurance producer license

maximum of 180 days without requiring an examination.

disclosure of nonpublic personal info

may not discloes, other than to a consumer reporting agency, any nonpublic personal info

a business entity

may obtain an insuracne producer's license only an individual licensed producer or limited lines producer can sell, solict, or negotiate a contract of insuance in this state.

commissioner

may serve a notice or order by registered or certified mail to the insurance producer or applicant at teh address of recod in the files of the department

Insurance producer

means required to be licensed under the laws of this state to sell, solicit, or negotiate insurance

18

minium age to apply for license

commissioner

the head of the state department of insurance

20 hours

prelicensing requirement for life, health property and casualty

allowd

producers are allowed to carry over a maximum of 12 excess CE hours to the renewal cycle. does not apply to ethics

Change of address

provide certication form the new resident state within 30 days of the change of legal residence no fee

conducting investigations

question people, subpoena witnesses, and examine them under oath. all documents is considered to be privelged info and cannot be admissible as evidence in any private civil proceeding

unfair replacement transacting practices

replacing an insurance policy or annuity contract in a manner contrary to the rules established by teh commissoner

change of address

required to notify the insurance commissioner of a change of legal name or address with 30 days of change

reasons for suspendsion revoksion or refuse to issue or renew a licence

selling soliciting or negotiating insurance for a company taht is not authorized to transact the business of insurance in this stae

appointment

the authority given by an insurer to an agent to transact insurance or adjust claims on teh insurer's behalf

the course of investigation

the commissioner has the right to take the testimony under oath of any person involved in the business of insurance. the commisioner must give the perosn at least 14 days advance written notice of the time and place of teh testimony

Notice of appoinment

the commissioner must verify within 30 days that teh insurance producer is eligible for appoinment. if they are commissioner must notify the insurer within 5 days of the determination.

sss

to appoint a producer as its agent, the insurer must file a notice of appointment within 15 days form the date the agency contract is executed or the first insurance application is submitted

Unfair trade practices

to knowingly commit an unfair method of competition or to engage in such actions with enough frequency . may order the person to cease and desit from engaging in teh method of completion, act, or practice, and or impose penalties for violation of insurance laws

Unfair trade practice

to make any statement that an insures policies are guaranteed by the existence of the insurance guaranty association

30 days

to notify commissioner of appoinment termination

15 days

to notify producer of appoinment termination

cease and desist

to stop or discontinue

limited lines insurance include

travel insuance, credit life, credit accident and health, or involuntary unemployment credit insurance; personal propery insurance sold ot a debtor under a master group policy issued to a creditor, mortgage guaranty insuance, crop hail insurance, title insurance, portable electronics insurance and self-service storage insurance

reasons for suspendsion revoksion or refuse to issue or renew a licence

using dishonest practices, or demonstrating incompetence, untrustworthiness or financial fraud

reasons for suspendsion revoksion or refuse to issue or renew a licence

using dishonest proctices or demonstrating incompetence untrustworthiness or financial irresponsibility

reasons for suspendsion revoksion or refuse to issue or renew a licence

violating any law, rule regulation, subpoena or order of teh commissioner

Tennessee life and health insurance guaranty association

was created as a nonprofit legal entity to protect the insured and theri beneficiaries against insolvent or impared insurers.

defamation

when an oral or written statement is made that is intended to injure a person engaged in teh insuance businss. Also applies to statement that are maliciously critical of teh financial condition of any person or a company

action

will be goveren by teh uniform administrative procedures act the commissioner decides to deny an app for a license the applicant must be notified within 30 days