State RegulationsTN specificDifficulty 2/5
During an employer's group benefits enrollment, a salaried employee of the employer distributes plan materials, helps employees complete enrollment forms, and answers factual questions about the plan, receiving no commission or other compensation tied to enrollments. Under Tennessee law, is a producer license required for this activity?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
T.C.A. § 56-6-104 excludes from the definition of transacting insurance the handling of group-enrollment information by persons who receive no commission, so the employer's salaried helper may distribute materials and answer factual questions without a Tennessee producer license. The exemption collapses the moment the person's compensation becomes tied to enrollment outcomes, which the Commissioner treats as selling insurance.
Why the other options are wrong
- B) Physical contact with enrollment forms is not the trigger; the statute focuses on commission-based transacting, which this employee lacks.
- C) No surety-bond condition exists for this exemption; the operative condition under T.C.A. § 56-6-104 is the absence of commission-based compensation.
- D) Licensure in another state is irrelevant to the Tennessee exemption, which applies to unlicensed salaried employees handling enrollment information without commission.
Memory hook
Paper-pushing at enrollment is free — pay per signup and you are selling.