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State RegulationsTN specificDifficulty 2/5

A Tennessee manufacturer's full-time, salaried human-resources counselor explains the company's employee benefit plans to employees during open enrollment and receives no commission on any enrollment. Under Tennessee licensing law, is a producer license required?

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Answer & full 3-part explanation (select an option above, or peek)

Why C is correct

T.C.A. § 56-6-104 excepts from producer licensing a salaried, full-time employee who counsels or advises his own employer's employees on employee benefits. The exception rests on the employment structure and the absence of commissions: the counselor serves the employer, not the public, and earns no commission on the enrollments. Individual producers who solicit insurance for compensation do not fit this exception and must be licensed.

Why the other options are wrong

  • A) The statutory exception in T.C.A. § 56-6-104 means this activity is not treated as licensed insurance business, even though it touches employee benefit plans.
  • B) No insurer appointment rescues the analysis; the exception applies on its own terms, and the 15-day window in T.C.A. § 56-6-115 concerns appointment filings by insurers, not this exception.
  • D) Individual producers are the core of the licensing system; business entities are not the only persons who can be required to hold licenses.

Memory hook

Salaried, own employer, no commission — Tennessee leaves the HR counselor unlicensed.

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