Tennessee Laws and Rules Common to All Lines Quiz with Complete Solutions

Tennessee Laws and Rules Common to All Lines Quiz with Complete Solutions Rebating is an unfair trade practice and is regulated by law. All of the following would be considered to be rebating EXCEPT. A. An agent offers tickets to a baseball game as an inducement to buy insurance. B. An agent uses misrepresentation to convince a person to cancel an existing policy and take a new policy from him. C. An agent offers the use of his lake house to person as an inducement to buy. D. An agent offers to share his commission with a policyholder. An agent uses misrepresentation to convince a person to cancel an existing policy and take a new policy from him. If an individual licensee's violation of the insurance code was known or should have been known by one or more of the partners, officers, or managers of the agency, what could happen to agency? A. The agency's license may be suspended. B. The agency's license may be revoked. C. The Commissioner may hold a hearing to determine if a violation was committed. D. All of the above may happen. All of the above may happen. What is the minimum required age for an insurance producer in this state? A. 17 years old. B. 18 years old. C. 21 years old. D. 23 years old. 18 years old. An insurer devises an intimidation strategy in order to corner a large portion of the insurance market. Which of the following best describes this practice? A. A legal advertising strategy. B. Unfair Discrimination. C. Defamation. D. Illegal. Illegal. Two individuals are in the same risk and age class; yet, they are charged different rates for their insurance policies due to an insignificant factor. What is this called? A. Misrepresentation. B. Adverse selection. C. Discrimination. D. Law of Large Numbers. Discrimination. An agent offers his client free tickets to a sporting event in exchange for the purchase of an insurance policy. The agent is guilty of. A. Twisting. B. Controlled business. C. Rebating. D. Coercion. Rebating. An unauthorized insurer is one that. A. Is located in the State of Tennessee but is incorporated under the laws of another state. B. Is not located in the State of Tennessee. C. Is not allowed, for whatever reason, to transact insurance business in the State of Tennessee. D. Is allowed to offer advice to a purchaser of insurance, but is not allowed to write an insurance contract. Is not allowed, for whatever reason, to transact insurance business in the State of Tennessee.