State RegulationsTN specificDifficulty 3/5
After a Tennessee applicant signs an illustration, the producer edits the projected cash values upward before delivering the policy package, believing it will close the sale. Under Tenn. Comp. R. & Regs. 0780-1-40, how is this conduct treated?
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Tenn. Comp. R. & Regs. 0780-1-40 requires the producer's signed statement to certify that the illustration is unchanged since the applicant signed it, so post-signature editing is a direct violation. Presenting inflated values also risks a misrepresentation charge under the Tennessee Department of Commerce & Insurance's unfair trade practices framework, exposing both the producer and the insurer.
Why the other options are wrong
- A) Delivery does not launder the alteration; the rule fixes the signed illustration as the approved presentation.
- B) Applicant silence cannot validate a change the rule expressly forbids after signature.
- C) The violation exists the moment the illustration is altered; insurer knowledge is not an element the rule requires.
Memory hook
Signed is sealed: touch the numbers after signature and the rule is broken.