State RegulationsTN specificDifficulty 1/5
Under T.C.A. § 56-6-120, what is the core purpose of an investigation conducted by the Tennessee Department of Commerce & Insurance?
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
T.C.A. § 56-6-120 authorizes the Commissioner of the Tennessee Department of Commerce & Insurance to investigate in order to find out whether the insurance laws have been or are about to be violated. The investigation is fact-gathering: it supplies the evidentiary basis on which the department may later hold hearings, enter orders, and impose penalties. It is a regulatory tool, not a commercial or licensing-substitute function.
Why the other options are wrong
- B) Commission rates are set by insurers and their producers, not by departmental investigations.
- C) Investigations exist to probe possible violations of the insurance laws, not to promote the department.
- D) An investigation is not a substitute for the licensing process; applicants follow the department's licensing procedure.
Memory hook
Investigate = find out if the law was broken — nothing more glamorous.