State RegulationsTN specificDifficulty 1/5
Which official is authorized to investigate suspected violations of Tennessee's insurance laws, such as unlicensed selling or false filings?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
T.C.A. § 56-6-120 empowers the Commissioner of the Tennessee Department of Commerce & Insurance to conduct investigations into suspected violations of the insurance laws. Investigation is a core regulatory function of the department: it is how the state gathers facts about unlicensed activity, misrepresentations, or false filings before deciding whether formal proceedings are warranted. No private party or other official substitutes for the Commissioner in exercising this authority.
Why the other options are wrong
- A) Prosecutors handle criminal matters, but the investigation of insurance law violations is the Commissioner's function under T.C.A. § 56-6-120.
- C) An insurer's president is a regulated party, not the regulator; the insurer cannot investigate on the state's behalf.
- D) Industry peers have no investigative authority over one another; the power belongs to the department.
Memory hook
The Commissioner is Tennessee's insurance detective-in-chief under T.C.A. § 56-6-120.