Tennessee Life & Health Insurance Exam — All Questions

Which authority regulates the business of insurance and issues resident insurance producer licenses in Tennessee?

• a.A self-regulatory body run by the insurance companies
• b.Tennessee Department of Commerce & Insurance✓
• c.The U.S. Department of Insurance
• d.The National Association of Insurance Commissioners (NAIC)

In Tennessee, insurance is regulated by the Tennessee Department of Commerce and Insurance (TDCI). The NAIC is a coordinating body of state regulators, not a licensing authority, and there is no federal 'Department of Insurance' that licenses producers. Insurance is regulated at the state level.

A person who wants to sell both life insurance and health (accident and sickness) coverage in Tennessee generally needs:

• a.A separate business corporation license for each product
• b.Only a federal securities registration
• c.An insurance producer license with the life and the accident and health (or sickness) lines of authority✓
• d.A property and casualty producer license

Tennessee, like other states under the Producer Licensing Model Act, issues a single insurance producer license to which specific lines of authority attach. To sell life and health products a producer adds the life line and the accident and health (accident and sickness) line. Property and casualty is a different line for different products.

Before a licensed Tennessee producer may transact business on behalf of a particular insurer, what generally must happen?

• a.The insurer must appoint the producer, filing notice of the appointment with TDCI✓
• b.The producer must be related to an officer of the insurer
• c.The producer must post a personal surety bond with the state treasurer
• d.Nothing further is required once the producer holds a license

Holding a license lets a person act as a producer, but to represent a specific company that insurer must appoint the producer, and the appointment is filed with TDCI. A producer may hold appointments with several insurers at once. The appointment is how the insurer accepts responsibility for the producer's acts.

What is the general continuing education (CE) expectation for a resident life and health producer renewing a Tennessee license?

• a.No continuing education is ever required
• b.Roughly 24 hours of approved CE each two-year license term, including a required ethics component✓
• c.One hour of CE for the life of the license
• d.A full re-taking of the state licensing exam at every renewal

Tennessee follows the common state pattern of requiring approximately 24 hours of approved continuing education during each two-year license term, including a required ethics portion, plus payment of the renewal fee. Producers should confirm the current hour and ethics requirements with TDCI, because the exact figures are set by rule and can change.