State RegulationsTN specificDifficulty 3/5
In which situation does Tennessee law require the individual to obtain a producer license?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
The exceptions to producer licensing in T.C.A. § 56-6-104 are built around salaried, non-commissioned roles: the employer's own benefit counselor, pure advertising without solicitation, and the insurer's own clerical or administrative staff. The moment the counselor starts receiving a commission for each policy sold, the activity becomes compensated solicitation of insurance, which falls outside every exception and requires a producer license.
Why the other options are wrong
- A) Counseling one's own employer's employees as a salaried employee is an express exception under T.C.A. § 56-6-104.
- B) Pure advertising with no intent to solicit insurance is expressly excepted from licensing under T.C.A. § 56-6-104.
- C) An insurer's own salaried clerical employee performing administrative duties without commission is among the insurer-employee exceptions in T.C.A. § 56-6-104.
Memory hook
Commission is the cliff: the paycheck is safe, the per-policy cut needs a license.