State RegulationsTN specificDifficulty 2/5
A nonresident property and casualty producer licensed in his home state places a multi-state commercial property and casualty risk that includes Tennessee locations. Under Tennessee law, is he excepted from obtaining a Tennessee producer license?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
T.C.A. § 56-6-104 contains an exception for a nonresident producer selling multi-state commercial property and casualty contracts, recognizing that large commercial accounts often span several states. The producer's home-state license plus the multi-state commercial nature of the placement keeps him outside Tennessee's licensing requirement, even though the risk includes Tennessee locations.
Why the other options are wrong
- A) The multi-state commercial exception exists precisely so that not every Tennessee location forces licensure; blanket licensure is not required for these placements.
- C) The exception applies to commercial property and casualty lines, not to personal lines, and personal lines have no such carve-out.
- D) Life and health are outside this exception entirely; the carve-out in T.C.A. § 56-6-104 is specific to multi-state commercial property and casualty contracts.
Memory hook
Multi-state commercial P&C rides through Tennessee without a license — the statute says so.