State RegulationsTN specificDifficulty 3/5
A dispute arises over statements made in an application for life insurance that a Tennessee producer solicited and negotiated for the insurer. In the controversy, the producer is regarded as the agent of which party?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
T.C.A. § 56-6-115(b) provides that a producer who solicits or negotiates an application is regarded as the agent of the insurer, not of the insured, in controversies arising from the application. That characterization allocates responsibility for application misstatements away from the applicant and toward the insurer's side of the transaction in Tennessee disputes.
Why the other options are wrong
- A) Direct contact with the applicant does not make the producer the applicant's agent; the statute fixes the producer's role as the insurer's.
- B) The beneficiary has no agency relationship with the producer under Tennessee law.
- C) The statutory rule attributes the producer to the insurer in application controversies, regardless of the agency's independent business status.
Memory hook
You solicited it for the carrier? Then you are the carrier's agent.