State RegulationsTN specificDifficulty 2/5
As part of a life insurance replacement in Tennessee, what information must the producer obtain from the applicant concerning the coverage being replaced?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Tenn. Comp. R. & Regs. 0780-1-24-.05 requires the producer handling a replacement to obtain from the applicant a list of the existing life insurance policies that may be replaced. That list is what allows the existing insurers to be informed and to review whether replacing the coverage truly serves the applicant, a process the Tennessee Department of Commerce & Insurance oversees through the replacement rule.
Why the other options are wrong
- A) The producer's information-gathering duty centers on the existing policies, not on the applicant's tax filings, which are irrelevant to the replacement analysis.
- B) No notarized release from the existing insurer is part of the producer's duties; the existing insurer reviews the transaction rather than authorizing it in advance.
- D) The beneficiary's consent has no place in the producer's replacement information-gathering obligations, which run to the policyowner's existing coverage.
Memory hook
List the old policies by insurer — that list starts the replacement review.