Tennessee Insurance & Financial Planning
Proficiency Assessment: CISA & CDP Joint
Examination (2026 Edition)
Section 1: Tennessee Insurance Regulations & CISA Core
(Questions 1-50)
1. Under Tennessee Code Annotated (TCA) 56-7-101, what is the
"Free Look" period for a life insurance policy issued in Tennessee?
a) 7 days
b) 10 days
c) 20 days
d) 30 days
Answer: b) 10 days
Rationale: Tennessee law mandates a minimum 10-day free look
period during which the policyholder can review the policy and
return it for a full refund.
2. A CISA in Tennessee is primarily an expert in:
a) Investment banking regulations.
b) Personal lines insurance and advising clients on risk
management.
c) Corporate tax law.
d) Real estate appraisals.
Answer: b) Personal lines insurance and advising clients on risk
management.
Rationale: The Certified Insurance Service Advisor (CISA)
designation focuses on personal insurance, risk assessment, and
client service, distinct from financial advising or legal roles.
,3. Which of the following is a required disclosure for a Tennessee
insurance producer when replacing an existing life insurance
policy?
a) A signed statement by the applicant acknowledging the
replacement.
b) A 30-day waiting period before the new policy is issued.
c) A requirement that the new policy must have a lower premium.
d) A mandatory home visit by the insurer.
Answer: a) A signed statement by the applicant acknowledging the
replacement.
Rationale: Tennessee’s replacement regulations require a signed
disclosure statement (often the NAIC model form) to ensure the
client understands the implications of surrendering an existing
policy.
4. The Tennessee Guaranty Association provides protection for
policyholders in the event of:
a) A stock market crash.
b) An insurance company insolvency.
c) The policyholder filing for bankruptcy.
d) A natural disaster claim denial.
Answer: b) An insurance company insolvency.
Rationale: The Tennessee Life and Health Insurance Guaranty
Association and the Property and Casualty Insurance Guaranty
Association are safety nets that cover claims if an insurer goes
bankrupt.
5. An agent is discussing life insurance with a client. The client asks
if the cash value is protected from creditors in Tennessee. The
agent should state:
,a) Cash value is fully exempt from all creditors under any
circumstance.
b) Cash value is only protected if the beneficiary is a spouse or
child.
c) Cash value is generally protected from the insured’s creditors
under Tennessee’s exemption statutes, provided the policy is not
fraudulently transferred.
d) There is no creditor protection for cash value in Tennessee.
Answer: c) Cash value is generally protected from the insured’s
creditors under Tennessee’s exemption statutes, provided the
policy is not fraudulently transferred.
Rationale: Tennessee law (TCA 56-7-103) provides significant
protection for life insurance cash values and proceeds from
creditors, with exceptions for fraudulent transfers.
6. What is the maximum penalty for acting as an insurance
producer in Tennessee without a license?
a) A warning letter
b) A fine of up to $1,000
c) A fine of up to $10,000 and/or imprisonment
d) Community service
Answer: c) A fine of up to $10,000 and/or imprisonment
Rationale: Unlicensed activity is a Class B misdemeanor in
Tennessee, carrying potential fines up to $10,000 and jail time,
emphasizing the importance of licensing.
7. Under Tennessee law, an insurer must acknowledge receipt of a
claim within how many working days?
a) 5
b) 10
, c) 15
d) 30
Answer: c) 15
Rationale: The Tennessee Unfair Claims Settlement Practices Act
requires insurers to acknowledge claim communications within 15
working days.
8. When advising a client on Umbrella Liability Insurance, a CISA
should explain that this policy:
a) Only covers property damage.
b) Provides excess liability coverage above underlying home and
auto policies.
c) Replaces the need for auto insurance.
d) Is only available for commercial clients.
Answer: b) Provides excess liability coverage above underlying
home and auto policies.
Rationale: A Personal Umbrella Policy (PUP) kicks in when the
limits of underlying primary policies (auto, home, watercraft) are
exhausted.
9. Which of the following best describes "Errors and Omissions"
(E&O) insurance for a CISA?
a) Coverage for client investment losses.
b) Professional liability coverage for mistakes or negligence in
providing insurance advice.
c) Health insurance for the agent.
d) Coverage for office property damage.
Answer: b) Professional liability coverage for mistakes or
negligence in providing insurance advice.
Rationale: E&O insurance is critical for producers to protect
Proficiency Assessment: CISA & CDP Joint
Examination (2026 Edition)
Section 1: Tennessee Insurance Regulations & CISA Core
(Questions 1-50)
1. Under Tennessee Code Annotated (TCA) 56-7-101, what is the
"Free Look" period for a life insurance policy issued in Tennessee?
a) 7 days
b) 10 days
c) 20 days
d) 30 days
Answer: b) 10 days
Rationale: Tennessee law mandates a minimum 10-day free look
period during which the policyholder can review the policy and
return it for a full refund.
2. A CISA in Tennessee is primarily an expert in:
a) Investment banking regulations.
b) Personal lines insurance and advising clients on risk
management.
c) Corporate tax law.
d) Real estate appraisals.
Answer: b) Personal lines insurance and advising clients on risk
management.
Rationale: The Certified Insurance Service Advisor (CISA)
designation focuses on personal insurance, risk assessment, and
client service, distinct from financial advising or legal roles.
,3. Which of the following is a required disclosure for a Tennessee
insurance producer when replacing an existing life insurance
policy?
a) A signed statement by the applicant acknowledging the
replacement.
b) A 30-day waiting period before the new policy is issued.
c) A requirement that the new policy must have a lower premium.
d) A mandatory home visit by the insurer.
Answer: a) A signed statement by the applicant acknowledging the
replacement.
Rationale: Tennessee’s replacement regulations require a signed
disclosure statement (often the NAIC model form) to ensure the
client understands the implications of surrendering an existing
policy.
4. The Tennessee Guaranty Association provides protection for
policyholders in the event of:
a) A stock market crash.
b) An insurance company insolvency.
c) The policyholder filing for bankruptcy.
d) A natural disaster claim denial.
Answer: b) An insurance company insolvency.
Rationale: The Tennessee Life and Health Insurance Guaranty
Association and the Property and Casualty Insurance Guaranty
Association are safety nets that cover claims if an insurer goes
bankrupt.
5. An agent is discussing life insurance with a client. The client asks
if the cash value is protected from creditors in Tennessee. The
agent should state:
,a) Cash value is fully exempt from all creditors under any
circumstance.
b) Cash value is only protected if the beneficiary is a spouse or
child.
c) Cash value is generally protected from the insured’s creditors
under Tennessee’s exemption statutes, provided the policy is not
fraudulently transferred.
d) There is no creditor protection for cash value in Tennessee.
Answer: c) Cash value is generally protected from the insured’s
creditors under Tennessee’s exemption statutes, provided the
policy is not fraudulently transferred.
Rationale: Tennessee law (TCA 56-7-103) provides significant
protection for life insurance cash values and proceeds from
creditors, with exceptions for fraudulent transfers.
6. What is the maximum penalty for acting as an insurance
producer in Tennessee without a license?
a) A warning letter
b) A fine of up to $1,000
c) A fine of up to $10,000 and/or imprisonment
d) Community service
Answer: c) A fine of up to $10,000 and/or imprisonment
Rationale: Unlicensed activity is a Class B misdemeanor in
Tennessee, carrying potential fines up to $10,000 and jail time,
emphasizing the importance of licensing.
7. Under Tennessee law, an insurer must acknowledge receipt of a
claim within how many working days?
a) 5
b) 10
, c) 15
d) 30
Answer: c) 15
Rationale: The Tennessee Unfair Claims Settlement Practices Act
requires insurers to acknowledge claim communications within 15
working days.
8. When advising a client on Umbrella Liability Insurance, a CISA
should explain that this policy:
a) Only covers property damage.
b) Provides excess liability coverage above underlying home and
auto policies.
c) Replaces the need for auto insurance.
d) Is only available for commercial clients.
Answer: b) Provides excess liability coverage above underlying
home and auto policies.
Rationale: A Personal Umbrella Policy (PUP) kicks in when the
limits of underlying primary policies (auto, home, watercraft) are
exhausted.
9. Which of the following best describes "Errors and Omissions"
(E&O) insurance for a CISA?
a) Coverage for client investment losses.
b) Professional liability coverage for mistakes or negligence in
providing insurance advice.
c) Health insurance for the agent.
d) Coverage for office property damage.
Answer: b) Professional liability coverage for mistakes or
negligence in providing insurance advice.
Rationale: E&O insurance is critical for producers to protect
