Tennessee laws and rules pertinent to insurance

Domestic Insurance Company

A company that resides and incorporated under the laws of the state in which its home office is located.

Equivalent Level Death Benefit

A life insurance policy that pays a guaranteed amount regardless of the cause of death.

Limited Lines Producer

A person authorized by the commissioner to sell, solicit, or negotiate limited lines insurance. Includes; Limited travel insurance, Credit life, mortgage guaranty insurance, personal property insurance, crop hail insurance and title insurance.

Authorized Insurer

An insurance company that has qualified and received a Certificate of Authority from the Department of Insurance to transact insurance in the state.

Foreign Insurance Company

An insurance company that is incorporated outside the state where it is conducting business

Equivalent Level Annual Dividend

Dividends vary each year. To determine level dividends, divide the total dividends for 10 or 20 years by the years included to arrive at an average amount.

Continuing Education

Every two years an agent needs to abide by the following rules to maintain license 1) 24 hours of continuing education every two years 2) any continuing education must include 3 hours in law and ethics 3) pay license fees, appointment and renewal fees 4) continue to be appointed with an insurance company.

notice

If the commissioner decides to deny an application for a license, he must notify the applicant and give written notice the application has been denied within 30 days.

Non-forfeiture Law

Insurers shall provide a table showing the cash surrender non forfeiture values and options in the event of the default of premium payments for at least the first 20 years of a cash value policy.

Defamation

It is an illegal practice to make any public statement or advertisement that contains false info or unsubstantiated criticisms about an insurance company intended to harm or malign.

Fiduciary Responsibility

Producers have a responsibility for all funds collected from clients. Producers must not mingle these fund with their own personal funds

Investigations

The commissioner may subpoena witnesses and examine them under oath. The department will supply a copy of the complaint within 30 days of issuance of the receipt of complaint. 14 days written notice of the commissioners intent. Commissioner must notify both parties within 30 days of completing investigation. must be completed within a two-year period with annual tracking reporting to the commissioner

Cash Dividends

The current illustrated dividend that can be applied toward payment of the gross premium.

commissioner

The department of commerce and insurance and the commissioner of commerce and insurance are responsible for administrating Tennessee's insurance laws. The Commissioner of commerce and insurance , the chief officer of the Tennessee Department of commerce and insurance is appointed by the Governor.

Alien Insurance Company

a company that is charted and organized in any country other than the US.

Business Entity

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

Nonresident Producer

a producer who holds a resident license in a different state may apply for a nonresident license in Tennessee, as long as both states have a reciprocal agreement.

Producer

an individual who in any manner sells, solicits, or negotiates insurance on behalf of insurance companies for compensation is an insurance Producer. a producer may apply for the following license. -life insurance, accident & health or sickness insurance -property insurance and casualty insurance -variable life insurance -personal lines property and casualty insurance -credit limited line credit insurance

Life Insurance Costs Indexes

any references to the life insurance cost indexes must explain that they are useful only for comparing similar policies. whenever dividend are reflected, a statement must explain that they are based on the company's current dividend scale and are not guaranteed.

Temporary License

the Commissioner may issue a temp insurance producer license for a maximum period of 180 days without requiring an examination if the commissioner deems that the temporary license is necessary for the servicing of an insurance business.