State RegulationsTN specificDifficulty 1/5
Which Tennessee rule chapter, adopted by the state's insurance department, establishes the standards a life producer must follow when recommending the purchase of an annuity contract?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Tenn. Comp. R. & Regs. 0780-01-86 is the Tennessee Department of Commerce & Insurance rule chapter that sets the licensing and suitability standards for annuity recommendations, built on a best-interest framework for producers recommending annuity contracts to consumers. It is the operative chapter for any life producer's annuity sales conduct in this state.
Why the other options are wrong
- A) The Medicare supplement chapter addresses supplement policies and their minimum standards, not annuity recommendation standards.
- C) Continuing education provider rules govern approved coursework, not the conduct of recommending annuity contracts.
- D) Premium finance rules govern financing premiums, a subject unrelated to annuity suitability.
Memory hook
Annuity advice in Tennessee answers to the annuity licensing and suitability chapter, 0780-01-86.