State RegulationsTN specificDifficulty 2/5
A Tennessee producer presents an illustration to a life insurance applicant. What duty does the producer have with respect to that presentation under Tenn. Comp. R. & Regs. 0780-1-40?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Tenn. Comp. R. & Regs. 0780-1-40 requires the producer to sign a statement that the illustration was presented in accordance with the rule, contains no untrue statements, and is unchanged since the applicant signed it. The producer's signature creates personal accountability for honest presentation, which the Tennessee Department of Commerce & Insurance can police in disciplinary proceedings.
Why the other options are wrong
- A) Guaranteeing nonguaranteed values directly contradicts the rule's core prohibition on presenting projections as promises.
- B) Illustrations do not require advance approval from the Commissioner; the rule works through signed statements, not pre-approval.
- D) The rule contemplates the applicant receiving the illustration; withholding the only copy would violate the disclosure scheme.
Memory hook
Producer signs the honesty pledge: presented as approved, nothing untrue, nothing altered.