Tennessee Property & Casualty Insurance License Exam — All Questions
2 questions
Which agency regulates insurance and licenses resident property and casualty producers in Tennessee?
- a.The Tennessee Secretary of State
- b.The Tennessee Department of Commerce and Insurance (Insurance Division)✓
- c.The Tennessee Department of Safety and Homeland Security
- d.The Tennessee Department of Motor Vehicles
Insurance in Tennessee is regulated by the Tennessee Department of Commerce and Insurance (TDCI) through its Insurance Division, led by the Commissioner (tn.gov/commerce). TDCI issues, renews, and revokes producer licenses. On the exam, remember it is TDCI, not the Secretary of State or a motor-vehicle agency, that licenses property and casualty producers.
A Tennessee producer offers to rebate part of the commission to a client as an inducement to buy a policy. Under Tennessee's unfair trade practices law this is:
- a.Permitted if the insurer approves
- b.Permitted for commercial clients only
- c.Prohibited rebating✓
- d.Required to be disclosed but otherwise lawful
Giving any part of the premium or commission, or other valuable consideration not stated in the policy, as an inducement to buy is prohibited rebating under Tennessee's unfair trade practices statutes and can bring fines and license action by the Tennessee Department of Commerce and Insurance.