State RegulationsTN specificDifficulty 2/5
The designated producer of a licensed Tennessee business entity dies, and a member of the entity needs time to wind up or continue the business. For how long may the Commissioner issue a temporary producer license in this situation?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
T.C.A. § 56-6-111 authorizes the Commissioner to issue a temporary producer license for a period of up to 180 days without an examination — for example, to a member or employee of a licensed business entity upon the designated individual's death or disability. The Commissioner may limit the temporary license's authority and require a sponsor, and the temporary license may not continue after the business is disposed of.
Why the other options are wrong
- A) Sixty days is not the Tennessee temporary-license duration; the statute allows up to 180 days.
- B) Ninety days is the examination-exemption window in Tennessee, not the temporary-license term.
- D) One year exceeds the statutory maximum; temporary producer licenses run no longer than 180 days.
Memory hook
Temporary means 180 — half a year to sort out the business.