TN LIFE EXAM REVIEW QUESTIONS WITH
VERIFIED SOLUTIONS NEW MODIFIED GRADED
A+ TESTED AND APPROVED
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? --CORRECT ANSWER--The Commissioner
____________ is a person required to be licensed under the laws of
this state to sell, solicit or negotiate insurance. --CORRECT
ANSWER--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. --CORRECT
ANSWER--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? --
CORRECT ANSWER--Kevin will be personally liable
Page 1 of 94
,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? --CORRECT ANSWER--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?
--CORRECT ANSWER--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
Page 2 of 94
,**If Mary is employed by Joe, her compensation must be a fixed
nominal dollar amount --CORRECT ANSWER--**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__________. --CORRECT ANSWER--Fiduciary
Capacity
best describes the penalty the Commissioner will impose for
mishandling any money that an insurance producer receives for
soliciting, negotiating, or selling insurance? --CORRECT ANSWER--
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. --
CORRECT ANSWER--will need a license
Page 3 of 94
, 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 --CORRECT
ANSWER--**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
Page 4 of 94
VERIFIED SOLUTIONS NEW MODIFIED GRADED
A+ TESTED AND APPROVED
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? --CORRECT ANSWER--The Commissioner
____________ is a person required to be licensed under the laws of
this state to sell, solicit or negotiate insurance. --CORRECT
ANSWER--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. --CORRECT
ANSWER--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? --
CORRECT ANSWER--Kevin will be personally liable
Page 1 of 94
,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? --CORRECT ANSWER--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?
--CORRECT ANSWER--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
Page 2 of 94
,**If Mary is employed by Joe, her compensation must be a fixed
nominal dollar amount --CORRECT ANSWER--**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__________. --CORRECT ANSWER--Fiduciary
Capacity
best describes the penalty the Commissioner will impose for
mishandling any money that an insurance producer receives for
soliciting, negotiating, or selling insurance? --CORRECT ANSWER--
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. --
CORRECT ANSWER--will need a license
Page 3 of 94
, 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 --CORRECT
ANSWER--**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
Page 4 of 94
