Tennessee Laws and Rules/ Questions with
Certified Answers/ 2024-2025.
Which of the following is an example of defamation? - Answer: Circulating
brochures that falsely denounce the financial condition of an insurer
Which of these is NOT a fair marketing practice when an existing insurance policy is being
replaced? - Answer: Reduce the cost by lowering the commission
In Tennessee, a(n) _______ insurance company is one formed under the laws of a state outside
of Tennessee. - Answer: foreign
If an insurance producer applicant is required to a written examination, what is also required? -
Answer: A fingerprint-based criminal background check
Who would be liable for an insurance claim on a policy sold by a Tennessee producer and issued
by an insurance company NOT authorized to conduct business in Tennessee? - Answer: The
producer
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, *The producer is liable for all insurance contracts unlawfully made in TN with an insurance
company not authorized to do business in TN.
A Long-Term Care policy sold in Tennessee MUST be - Answer: Guaranteed renewable
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 - Answer:
that a commission will be earned in addition to any fee charged for financial planning
When engaged in an insurance transaction in Tennessee, the producer represents the - Answer:
insurer
The Commissioner would like to hold a hearing against a producer. Before the hearing os held, a
notice - Answer: must be sent by registered or certified mail to the producer's address on file
All of these statements regarding referrals are true EXCEPT:
-The Commissioner may establish by rule a maximum amount for each referral
-The person making the referral may not discuss the specific policy terms and conditions
-Referral fees may not be tied to the purchase of a policy
-Referral fees must be filed and approved with the Commissioner of Insurance - Answer:
Referral fees must be filed and approved with the Commissioner of Insurance
Unfair discrimination is BEST described as - Answer: charging a different rate for someone in the
same actuarial class
In Tennessee, the MAXIMUM fine that the Commissioner can impose on a producer is ______
per violation. - Answer: $1,000
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Certified Answers/ 2024-2025.
Which of the following is an example of defamation? - Answer: Circulating
brochures that falsely denounce the financial condition of an insurer
Which of these is NOT a fair marketing practice when an existing insurance policy is being
replaced? - Answer: Reduce the cost by lowering the commission
In Tennessee, a(n) _______ insurance company is one formed under the laws of a state outside
of Tennessee. - Answer: foreign
If an insurance producer applicant is required to a written examination, what is also required? -
Answer: A fingerprint-based criminal background check
Who would be liable for an insurance claim on a policy sold by a Tennessee producer and issued
by an insurance company NOT authorized to conduct business in Tennessee? - Answer: The
producer
Page 1 of 6
, *The producer is liable for all insurance contracts unlawfully made in TN with an insurance
company not authorized to do business in TN.
A Long-Term Care policy sold in Tennessee MUST be - Answer: Guaranteed renewable
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 - Answer:
that a commission will be earned in addition to any fee charged for financial planning
When engaged in an insurance transaction in Tennessee, the producer represents the - Answer:
insurer
The Commissioner would like to hold a hearing against a producer. Before the hearing os held, a
notice - Answer: must be sent by registered or certified mail to the producer's address on file
All of these statements regarding referrals are true EXCEPT:
-The Commissioner may establish by rule a maximum amount for each referral
-The person making the referral may not discuss the specific policy terms and conditions
-Referral fees may not be tied to the purchase of a policy
-Referral fees must be filed and approved with the Commissioner of Insurance - Answer:
Referral fees must be filed and approved with the Commissioner of Insurance
Unfair discrimination is BEST described as - Answer: charging a different rate for someone in the
same actuarial class
In Tennessee, the MAXIMUM fine that the Commissioner can impose on a producer is ______
per violation. - Answer: $1,000
Page 2 of 6
