1. Use of credit information in rate determination for a new applicant requires

• Agreement of producer
• Disclosure to insured
• Agreement of insured
• Notification to the insurance department

2. Failing to affirm or deny coverage of claims within a reasonable time after proof of lose statements have been completed is

• Violation of the Prompt Pay status
• Violation of the policy provisions
• Unfair claim settlement practice
• Unfair claim arbitration standard

3. Which of the following situations involving compensation paid to insurance producers is NOT lawful?

• A bank accepts and cashes a commission check made payable to the bank for the sale of credit insurance
• An agency accepts and cashes a commission check made payable to the agency for the sale of auto insurance by one of it is laciness producer
• producer who just received a license accepts and cashes a postdated commission check for a policy meghated and spared weeks easier.
• A producer whose license has just lapsed accepts and cashes a commission check for a policy renewal

4. Under TN insurance law, all of the following actions are specific ground for commissioner to suspend, revoke accept:

• Obtaining a license through misrepresentation
• Refusing to address a mechanics line filed against the individuals home
• Demonstrating personal or professional financial irresponsibility
• Having a record as a convicted felon

5. In addition to the hazard of fire, a fire insurance policy covers losses from which of the following?

• Lighting
• Windstorm
• Explosion
• Hail

6. In a Commercial risk policy, at what point MUST an insurance company mail to an insured a notice of the companys ..

• When the rate increase is more than 5%
• When the rate increase is more than 10%
• When the rate increase is more than 20%
• When the rate increase is more than 25%

7. According to Tennessee insurance law, the definition of "controlled business includes that portion of an area company's bes

• where producers of insurance business have direct or indirect financial interests in the insur
• that offers insureds special package rates for placing all of their personal or commercial madence with a single apoy
• that provides rebates to applicants as inducements to purchase additional insurance
• that discourages insureds from changing insurers by giving short-rate premium refunds for middle poly canc

8. which of the following statements about the TN Guaranty Association is correct?

• the Association is designed to protect policyowners in the event that an insurance company becomes..
• only domestic insurance companies are members of the Association
• the Association is designed to cover all types of insurance sold in the state of TN
• the Association provides insurance for high- risk drivers who cannot otherwise obtain insurance

9. in the event that a producer has violated insurance lows and the commissioner has revoked the producer licenses, the commissioner may also repose ;

• $100
• $500
• $1,000
• $2,500