TN LIFE EXAM REVIEW QUESTIONS
AND ANSWERS GRADED A+ 2025/2026
Steven provided misleading information on his license application. best fits the penalty the
Commissioner might impose on Steven? - ANS The insurance Commissioner may refuse to
issue Steven a license
All of following are violations that may lead the insurance Commissioner to suspend or revoke a
license EXCEPT:
** Improperly withholding or misappropriating any property received in the course of doing
insurance business
**Intentionally misrepresenting the terms of an insurance policy
**Having been convicted of a misdemeanor
**Having an insurance producer license denied, suspended, or revoked in another jurisdiction -
ANS **Having been convicted of a misdemeanor
An individual's license can be suspended or revoked if they do business with unlicensed
individuals and - - ANS Companies that are not authorized to transact the business of
insurance in Tennessee
How many days does the Commissioner have to notify an individual that their application for a
license is being denied? - ANS 30 days
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,All of the following are duties of the Commissioner EXCEPT:
** The Commissioner may put a person in jail for violating insurance regulations
**The Commissioner may conduct investigations
**The Commissioner may be empowered to subpoena witnesses and examine them under
oath
**The Commissioner may choose to place a person on probation, suspend, revoke or refuse to
issue or renew an individual's license - ANS **The Commissioner may put a person in jail for
violating insurance regulations
The Commissioner may do all of the above except put a person in jail.
Any action by the Commissioner to put on probation, suspend, revoke or deny the renewal of a
license is governed by the _________ - ANS Uniform Administrative Procedures Act
Who has the authority to enforce the insurance laws of Tennessee and impose any penalty or
remedy authorized against any person who is under investigation for or charged with a violation
of insurance laws or regulations? - ANS The Commissioner
____________ is a person required to be licensed under the laws of this state to sell, solicit or
negotiate insurance. - ANS A Producer
_____________means a person, who sells, solicits or negotiates one or more forms of limited
line credit insurance coverage to individuals through a master, corporate, group or individual
policy. - ANS Limited Lines Producerr
Kevin sold insurance for an insurance company not authorized to do business in Tennessee.
Who is liable for any premiums paid for, or valid claims made on, all contracts of unlawfully sold
insurance? - ANS Kevin will be personally liable
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,Which of the following answers best describes the compensation an unlicensed individual may
receive from an insurer or insurance producer for conducting insurance business for which a
license is required? - ANS The unlicensed individual may not receive any compensation for
conducting the business of insurance if they are required to be licensed for that business
What is the term used to describe the commissions that may be paid to an unlicensed individual
who was licensed at the time of the sale, solicitation or negotiation of insurance for which they
are being paid? - ANS Renewal or deferred commissions
Mary is an unlicensed individual. Joe is a licensed insurance producer. All of the following are
true regarding referrals Mary makes to Joe EXCEPT:
**Mary will only be paid for her referral if the customer purchases an insurance product from
Joe
**Mary may make a referral to Joe; provided that Mary does not discuss the specific insurance
policy terms and conditions
**If Mary is not employed by Joe, her compensation must be a fixed dollar amount not to
exceed $25 per referral
**If Mary is employed by Joe, her compensation must be a fixed nominal dollar amount -
ANS **Mary will only be paid for her referral if the customer purchases an insurance product
from Joe
Whether Mary works for Joe or not, the referral compensation shall not depend on whether the
customer she refers purchases an insurance product from Joe.
All money a producer receives for conducting insurance business shall be held in a__________. -
ANS Fiduciary Capacity
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, best describes the penalty the Commissioner will impose for mishandling any money that an
insurance producer receives for soliciting, negotiating, or selling insurance? - ANS The
producers license may be denied, suspended or revoked
A producer______ whether or not they have an agency contract, agreement or an appointment
with an insurer; or is appointed or employed by a health maintenance organization (HMO) and
who engages in solicitation for membership in such organization. - ANS will need a license
All of the following are requirements of an applicant for a license to be approved by the
Commissioner EXCEPT:
**The applicant must complete the minimum prelicensure education requirements
**The applicant has passed the exam and paid the application fee
**The applicant is at least 21 years of age
**The applicant has not committed any acts that would be grounds for denial, suspension, or
revocation of a license - ANS **The applicant is at least 21 years of age
The applicant need to be 18 years of age. All the other criteria are requirements for approval of
the license application.
David would like to appoint Mary as his insurance agent for the ABC Insurance Company. All of
the following are true regarding that appointment EXCEPT:
**David must file a notice of appointment within 15 days from the date the contract is
executed
**David must file with Mary's employer who will determine if Mary is eligible for appointment
**David and Mary will be notified within 30 days if Mary is eligible for appointment
4 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
AND ANSWERS GRADED A+ 2025/2026
Steven provided misleading information on his license application. best fits the penalty the
Commissioner might impose on Steven? - ANS The insurance Commissioner may refuse to
issue Steven a license
All of following are violations that may lead the insurance Commissioner to suspend or revoke a
license EXCEPT:
** Improperly withholding or misappropriating any property received in the course of doing
insurance business
**Intentionally misrepresenting the terms of an insurance policy
**Having been convicted of a misdemeanor
**Having an insurance producer license denied, suspended, or revoked in another jurisdiction -
ANS **Having been convicted of a misdemeanor
An individual's license can be suspended or revoked if they do business with unlicensed
individuals and - - ANS Companies that are not authorized to transact the business of
insurance in Tennessee
How many days does the Commissioner have to notify an individual that their application for a
license is being denied? - ANS 30 days
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,All of the following are duties of the Commissioner EXCEPT:
** The Commissioner may put a person in jail for violating insurance regulations
**The Commissioner may conduct investigations
**The Commissioner may be empowered to subpoena witnesses and examine them under
oath
**The Commissioner may choose to place a person on probation, suspend, revoke or refuse to
issue or renew an individual's license - ANS **The Commissioner may put a person in jail for
violating insurance regulations
The Commissioner may do all of the above except put a person in jail.
Any action by the Commissioner to put on probation, suspend, revoke or deny the renewal of a
license is governed by the _________ - ANS Uniform Administrative Procedures Act
Who has the authority to enforce the insurance laws of Tennessee and impose any penalty or
remedy authorized against any person who is under investigation for or charged with a violation
of insurance laws or regulations? - ANS The Commissioner
____________ is a person required to be licensed under the laws of this state to sell, solicit or
negotiate insurance. - ANS A Producer
_____________means a person, who sells, solicits or negotiates one or more forms of limited
line credit insurance coverage to individuals through a master, corporate, group or individual
policy. - ANS Limited Lines Producerr
Kevin sold insurance for an insurance company not authorized to do business in Tennessee.
Who is liable for any premiums paid for, or valid claims made on, all contracts of unlawfully sold
insurance? - ANS Kevin will be personally liable
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,Which of the following answers best describes the compensation an unlicensed individual may
receive from an insurer or insurance producer for conducting insurance business for which a
license is required? - ANS The unlicensed individual may not receive any compensation for
conducting the business of insurance if they are required to be licensed for that business
What is the term used to describe the commissions that may be paid to an unlicensed individual
who was licensed at the time of the sale, solicitation or negotiation of insurance for which they
are being paid? - ANS Renewal or deferred commissions
Mary is an unlicensed individual. Joe is a licensed insurance producer. All of the following are
true regarding referrals Mary makes to Joe EXCEPT:
**Mary will only be paid for her referral if the customer purchases an insurance product from
Joe
**Mary may make a referral to Joe; provided that Mary does not discuss the specific insurance
policy terms and conditions
**If Mary is not employed by Joe, her compensation must be a fixed dollar amount not to
exceed $25 per referral
**If Mary is employed by Joe, her compensation must be a fixed nominal dollar amount -
ANS **Mary will only be paid for her referral if the customer purchases an insurance product
from Joe
Whether Mary works for Joe or not, the referral compensation shall not depend on whether the
customer she refers purchases an insurance product from Joe.
All money a producer receives for conducting insurance business shall be held in a__________. -
ANS Fiduciary Capacity
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, best describes the penalty the Commissioner will impose for mishandling any money that an
insurance producer receives for soliciting, negotiating, or selling insurance? - ANS The
producers license may be denied, suspended or revoked
A producer______ whether or not they have an agency contract, agreement or an appointment
with an insurer; or is appointed or employed by a health maintenance organization (HMO) and
who engages in solicitation for membership in such organization. - ANS will need a license
All of the following are requirements of an applicant for a license to be approved by the
Commissioner EXCEPT:
**The applicant must complete the minimum prelicensure education requirements
**The applicant has passed the exam and paid the application fee
**The applicant is at least 21 years of age
**The applicant has not committed any acts that would be grounds for denial, suspension, or
revocation of a license - ANS **The applicant is at least 21 years of age
The applicant need to be 18 years of age. All the other criteria are requirements for approval of
the license application.
David would like to appoint Mary as his insurance agent for the ABC Insurance Company. All of
the following are true regarding that appointment EXCEPT:
**David must file a notice of appointment within 15 days from the date the contract is
executed
**David must file with Mary's employer who will determine if Mary is eligible for appointment
**David and Mary will be notified within 30 days if Mary is eligible for appointment
4 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
