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
