Tennessee Laws & Rules Pertinent to Insurance

In TN a BLANK insurance company is one formed under the laws of a state outside of TN.

Foreign insurance company

The insurance Commissioner is REQUIRED to do what before holding a hearing that could lead to the suspension of a producer's license.

Give a written notice to the producer

The Tennessee Guaranty Association is subject to review and regulation by the Commissioner. A Financial statement must be submitted no later than BLANK of each year.

March 30th

When a Medicare Supplement policy is delivered to a policyholder, which of the following MUST accompany the policy?

Outline of Coverage

J applies for an insurance policy. What BEST describes the particular terms of this policy?

Policy Summary

The Tennessee Insurance Guaranty Association

Protects Tennessee insurance policy owners in the event an insurance company becomes insolvent

B is an insurance producer who occasionally engages in financial planning. If B sells an insurance policy during the course of a financial planning seminar, B must disclose to the client

that a commission will be earned in addition to any fee charged for financial planning

In Tennessee, the MAX fine that the Commissioner can impose on a producer is BLANK per violation.

$1,000

How long is a temporary license valid?

180 days

A producer needs to complete _ of continuing education every _ years.

24; 2

The Commissioner notifies the association of an insolvent insurer no later than BLANK days after receiving notice of the insurer's insolvnecy.

3 days

What is considered a producer's breach of fiduciary duty?

Allowing premiums to be submitted electronically

What is NOT a requirement to sell, solicit, negotiate Long-Term Care insurance?

Complete a one-time 4 hour course on estate planning

A provision that the policy, application, and all attachments shall constitute the BLANK between the parties.

Entire Contract

A Long-Term Care policy sold in Tennessee MUST be

Guaranteed renewable

An individual health insurance policy is REQUIRED to contain a(n)

Payment of Claims provision

What is valid TN regulation for referral fees?

The Commissioner may establish by rule a maximum amount for each referral

What authority does the Commissioner have over Tennessee producers?

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

A producer MUST leave a buyer's guide with an applicant for which type of policy?

Universal Life insurance

If an insurance producer applicant is required to pass a written examination, what is also required?

a fingerprint-based criminal background check

All of these insurance subjects qualify for continuing education credits in Tennessee EXCEPT:

motivating producers

The Commissioner wold like to hold a hearing against a producer. Before the hearing is held, a notice

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

XYZ Corp was issued a group Accident and Health policy for its employees. Under this plan a

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

A business entity can be defined as

association or a limited liability company

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, charger to distribute the costs of protection to all insurers.

Insurance contracts my be sold, solicited, or negotiated by an insurance producer ONLY upon

becoming an appointed producer of an insurer

How often must the Commissioner examine each domestic company?

Every five years

Who would be liable for an insurance claim on a policy sold by a TN producer and issued by an insurance company NOT authorized to conduct business in TN?

the producer

For a change to a health policy to be valid, what is required?

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

Unfair discrimination is BEST described as

charging a different rate for someone in the same actuarial class

When does the Free-Look provision for health insurance begin?

date the policy is delivered to the insured

In Tennessee, an insurer that is incorporated in New Jersey and conducts business in Tennessee is called

foreign insurer

A licensed producer can be BEST describes as a(n)

individual who places insurance on behalf of anyone seeking insurance

A producer may apply for one or more of the following licenses:

life insurance, personal lines property, accident and health or sickness insurance

What is NOT a fair marketing practice when an existing insurance policy is being replaced?

reduce the cost by lowering the commission

What is not a legitimate insurance marketing practice for obtaining business from a competitor?

reducing commissions in order to make a sale

An insurance producer could be found guilty of rebating by:

sharing commissions with a client who has purchased insurance

When a life insurance application is completed, a Policy Summary must be given to the applicant. The Policy Summary MUST include

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:

the premium is paid