State RegulationsTN specificDifficulty 2/5
A producer proposes dating a Tennessee life application so that the policy takes effect more than 6 months before the application, which would place the insured in a younger age band. What is the legal consequence?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
T.C.A. § 56-7-2308 prohibits any provision that makes a life policy take effect more than 6 months before the application. Backdating beyond that limit is not cured by the applicant's consent, because the statute treats the device as an unlawful premium-reduction technique rather than a private bargain between the parties, and the Tennessee Department of Commerce & Insurance polices it as a prohibited provision.
Why the other options are wrong
- B) Applicant consent does not authorize backdating past the statutory limit; T.C.A. § 56-7-2308 bars the provision itself.
- C) Tennessee law imposes no such requirement, and the prohibited-provision rule forecloses the practice outright.
- D) The prohibition applies at issuance, not as a post-issue cancellation right; the backdated provision is prohibited rather than deferred.
Memory hook
Backdating dies at 6 months — a younger age is not worth the violation.