State RegulationsTN specificDifficulty 1/5
Under Tennessee's replacement rules for life insurance, which statement about who carries duties in a replacement is correct?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Tennessee's replacement framework divides the work: Tenn. Comp. R. & Regs. 0780-1-24-.05 imposes duties on the producer soliciting the replacement, while the rule's companion provisions place responsibilities on the insurers involved, such as reviewing the replacement information provided. The Tennessee Department of Commerce & Insurance enforces the framework against both producers and insurers.
Why the other options are wrong
- A) The replacing insurer does not act alone; the producer's disclosure and information duties are core to the rule, so a witness-only view is wrong.
- B) The insurers are not bystanders; the rule assigns them their own responsibilities in reviewing replacement transactions.
- D) The applicant's choice does not shift regulatory duties onto the applicant; producers and insurers, not consumers, carry the rule's obligations.
Memory hook
Replacement is a team sport: producer discloses, insurers review.