A newly licensed Tennessee producer has her license in hand but no relationship with any insurer. Before she engages in the business of insurance, what else must generally be in place?

Why B is correct

Under the Tennessee producer licensing requirements administered by TDCI and reflected in T.C.A. § 56-6-103, a license alone is not enough: a producer shall not engage in the business of insurance until contracted by an insurer after licensure. The insurer contract (together with the appointment the insurer files) is what authorizes the producer to act for that company, so she must secure the contract before transacting business.

Why the other options are wrong

• A) The prelicensing examination is a prerequisite to licensure itself; once licensed, no second examination stands between the producer and contracting with an insurer.
• C) Tennessee's producer licensing framework does not condition starting business on a surety bond filed with the commissioner.
• D) There is no supervised probation period; the operative step is obtaining an insurer contract after licensure.

Memory hook

Licensed is not launched: no insurer contract, no insurance business.