State RegulationsTN specificDifficulty 1/5
Which of the following activities is exempt from Tennessee producer-licensing requirements?
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 B is correct
T.C.A. § 56-6-104 lists activities that do not constitute transacting insurance requiring a license, including an insurer's own officers, directors, and employees performing executive, clerical, underwriting, or claims work when they receive no commission. Transaction-based compensation is the hallmark that pulls an activity back inside the licensing requirement enforced by the Commissioner.
Why the other options are wrong
- A) Commission-based negotiation of insurance is the core activity the licensing statute regulates; it is not exempt.
- C) A per-application bonus is transaction-based compensation for solicitation, which T.C.A. § 56-6-104 does not exempt.
- D) Selling policies to the public is transacting insurance and requires a license regardless of the office setting.
Memory hook
Salaried, no commission, insurer's own staff — outside the license net.