State RegulationsTN specificDifficulty 2/5
A producer is licensed in the neighboring state where she lives and maintains her only residence. She wants to sell life insurance to clients located in Tennessee. Under Tennessee law, what must she generally do to sell that business lawfully?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Tennessee admits properly licensed producers from other states through the nonresident licensing process under T.C.A. § 56-6-108. A producer who is licensed and resident in her home state may obtain a Tennessee nonresident license for the life line and lawfully sell to Tennessee clients without giving up her home-state residency. Relocating is only necessary if she wants a Tennessee resident license under T.C.A. § 56-6-106.
Why the other options are wrong
- A) Relocation is not required for nonresident sales; T.C.A. § 56-6-108 allows nonresident licensure precisely so producers need not move to Tennessee.
- C) Tennessee law does not require every application to be co-signed by a resident producer; the nonresident license itself authorizes the sales.
- D) A temporary license under T.C.A. § 56-6-111 is issued only in special situations such as a producer's death or disability, not for ordinary nonresident licensing.
Memory hook
Nonresident neighbors get a nonresident license — no moving truck required.