health ch 8 laws and rules| 80 QUESTIONS|
WITH COMPLETE SOLUTIONS
The Department of Commerce and Insurance and the Commissioner of Commerce and Insurance
are
responsible for Correct Answer: administering Tennessee's insurance laws
The Commissioner of Commerce and
Insurance, the chief officer of the Tennessee Department of Commerce and Insurance, is
appointed by Correct Answer: the Governor
The Commissioner may Correct Answer: subpoena witnesses and examine them under oath.
The Department of Commerce and Insurance will
provide the person with a copy of the complaint within Correct Answer: 30 days of issuance of
the receipt of the
complaint
the Commissioner's intent to take testimony requires what Correct Answer: 14 days written
notice and the
Commissioner must notify both parties within 30 days of completing an investigation
investigations by a commissioner must be completed within what period Correct Answer: a 2
year period with annual tracking reporting to the
Commissioner
The Commissioner retains the authority to enforce what Correct Answer: code provisions and
impose any penalty against any
person under investigation.
After the investigation, if the Commissioner determines that those involved are responsible, a
fine can be given up to Correct Answer: to $1,000 for each violation, not to exceed $100,000 for
all violations
• If the violation was committed knowingly, the penalty can be up to $25,000 per violation not to
exceed $250,000 total
"Insurance Transaction" includes Correct Answer: Solicitation or inducement to purchase
insurance
• Negotiations toward the sale of insurance
• Executing a contract of insurance
• Advising on coverages and claims
A licensee may not Correct Answer: transact insurance business in Tennessee until the licensee
is appointed by an
insurer.
, an insurance producer is Correct Answer: An individual who in any manner sells, solicits, or
negotiates insurance on behalf of insurance companies
for compensation
The licensing of insurance producers is needed to Correct Answer: to protect the public
In Tennessee, an individual producer is considered to Correct Answer: represent the insurance
company
A business entity is a Correct Answer: corporation, association, partnership, limited liability
company, limited liability
partnership, or other legal entity
A limited lines producer is Correct Answer: a person authorized by the Commissioner to sell,
solicit, or negotiate limited
lines insurance
An unauthorized insurer is Correct Answer: a person who has not applied for or has not
qualified for a certificate of authority and is not
authorized to transact insurance business in Tennessee.
or all insurance contracts unlawfully made in Tennessee
with or on behalf of an insurance company that is not authorized to do business in Tennessee
Correct Answer: A person will be held personally liable
An applicant for a resident producer license in Tennessee must Correct Answer: Be at least 18
years of age
• Not have committed any act that is grounds for denial, suspension, or revocation
• Completed a prelicensing course
• Have passed the state exam for the lines of authority in which licensure is sought
• Submit the application with fees
• Not intend to use the license primarily to write controlled business
A producer who holds a resident license in a different state may apply for a Correct Answer:
nonresident license in
Tennessee, as long as both states have a reciprocal agreement
to apply to a nonresident license in tn what must nonresidents do Correct Answer: must submit
an
application form, proof of resident license in good standing, and fees
Nonresident producer applicants
do not have Correct Answer: to take the Tennessee state licensing exam, but must not have
committed any act for which
the license could be denied, suspended, or revoked.
WITH COMPLETE SOLUTIONS
The Department of Commerce and Insurance and the Commissioner of Commerce and Insurance
are
responsible for Correct Answer: administering Tennessee's insurance laws
The Commissioner of Commerce and
Insurance, the chief officer of the Tennessee Department of Commerce and Insurance, is
appointed by Correct Answer: the Governor
The Commissioner may Correct Answer: subpoena witnesses and examine them under oath.
The Department of Commerce and Insurance will
provide the person with a copy of the complaint within Correct Answer: 30 days of issuance of
the receipt of the
complaint
the Commissioner's intent to take testimony requires what Correct Answer: 14 days written
notice and the
Commissioner must notify both parties within 30 days of completing an investigation
investigations by a commissioner must be completed within what period Correct Answer: a 2
year period with annual tracking reporting to the
Commissioner
The Commissioner retains the authority to enforce what Correct Answer: code provisions and
impose any penalty against any
person under investigation.
After the investigation, if the Commissioner determines that those involved are responsible, a
fine can be given up to Correct Answer: to $1,000 for each violation, not to exceed $100,000 for
all violations
• If the violation was committed knowingly, the penalty can be up to $25,000 per violation not to
exceed $250,000 total
"Insurance Transaction" includes Correct Answer: Solicitation or inducement to purchase
insurance
• Negotiations toward the sale of insurance
• Executing a contract of insurance
• Advising on coverages and claims
A licensee may not Correct Answer: transact insurance business in Tennessee until the licensee
is appointed by an
insurer.
, an insurance producer is Correct Answer: An individual who in any manner sells, solicits, or
negotiates insurance on behalf of insurance companies
for compensation
The licensing of insurance producers is needed to Correct Answer: to protect the public
In Tennessee, an individual producer is considered to Correct Answer: represent the insurance
company
A business entity is a Correct Answer: corporation, association, partnership, limited liability
company, limited liability
partnership, or other legal entity
A limited lines producer is Correct Answer: a person authorized by the Commissioner to sell,
solicit, or negotiate limited
lines insurance
An unauthorized insurer is Correct Answer: a person who has not applied for or has not
qualified for a certificate of authority and is not
authorized to transact insurance business in Tennessee.
or all insurance contracts unlawfully made in Tennessee
with or on behalf of an insurance company that is not authorized to do business in Tennessee
Correct Answer: A person will be held personally liable
An applicant for a resident producer license in Tennessee must Correct Answer: Be at least 18
years of age
• Not have committed any act that is grounds for denial, suspension, or revocation
• Completed a prelicensing course
• Have passed the state exam for the lines of authority in which licensure is sought
• Submit the application with fees
• Not intend to use the license primarily to write controlled business
A producer who holds a resident license in a different state may apply for a Correct Answer:
nonresident license in
Tennessee, as long as both states have a reciprocal agreement
to apply to a nonresident license in tn what must nonresidents do Correct Answer: must submit
an
application form, proof of resident license in good standing, and fees
Nonresident producer applicants
do not have Correct Answer: to take the Tennessee state licensing exam, but must not have
committed any act for which
the license could be denied, suspended, or revoked.
