State RegulationsTN specificDifficulty 2/5
Which individual associated with a Tennessee insurer is NOT required to hold a producer license?
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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 excepts from licensing an insurer's own officers, directors, and employees who perform executive, clerical, underwriting, or claims functions and receive no commission. The salaried executive supervising underwriting and claims fits squarely within this exception. By contrast, anyone who sells or negotiates insurance for commissions is performing producer activities and must be licensed.
Why the other options are wrong
- B) A commissioned sales representative is soliciting insurance for compensation, the core activity the producer licensing provisions reach.
- C) Negotiating insurance applications is a producer activity; the insurer-employee exception covers administrative functions, not field sales or negotiation.
- D) An appointed accident and health producer is by definition performing licensed activity and must hold the corresponding license.
Memory hook
Inside desk, no commission: the insurer's own salaried staff stay unlicensed.