State RegulationsTN specificDifficulty 1/5
Which Tennessee provision governs fees charged in connection with an individual major medical policy when no commission is paid?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
T.C.A. § 56-6-125(b) specifically addresses fees for individual major medical policies when commission is not paid. It sits within Tennessee's producer-level regulation administered by the Tennessee Department of Commerce & Insurance, so a producer who charges a fee on an individual major medical transaction where no commission is involved is subject to that statutory provision rather than operating outside regulation.
Why the other options are wrong
- B) T.C.A. § 56-8-104 is the unfair trade practices catalogue, including rebating; it is not the provision addressing fees when commission is not paid.
- C) T.C.A. § 56-6-116 establishes the producer's fiduciary duty over premium funds, a different subject from fee charging.
- D) T.C.A. § 56-7-1453 governs Medicare supplement eligibility, which has nothing to do with producer fee rules.
Memory hook
No commission? Fees follow the producer fee statute for major medical.