State RegulationsTN specificDifficulty 2/5
An individual without a Tennessee license approaches homeowners, presents life insurance options from an insurer, and negotiates applications in exchange for compensation. Under T.C.A. § 56-6-102, what is she doing?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
T.C.A. § 56-6-102 keys the producer definition to the activity of selling, soliciting, or negotiating insurance. The individual performs all three: she presents coverage options (soliciting), discusses and negotiates applications (negotiating), and does so for compensation (the hallmark of doing it as a business). She therefore needs a producer license from the Tennessee Department of Commerce & Insurance before performing that work, regardless of the job title she claims.
Why the other options are wrong
- A) Serving buyers does not exempt the activity; negotiating insurance sales for compensation is precisely the conduct licensure exists to regulate.
- B) Underwriting is the insurer's risk-selection function; presenting options and negotiating applications in the field is producer work, not underwriting.
- D) The activities are squarely within the licensure definition; no 'market researcher' label removes them from regulation.
Memory hook
Sell, solicit, or negotiate for pay = producer — title doesn't matter, activity does.