Tennessee Insurance Laws, Regulations, and Licensing
The regulator
Insurance in Tennessee is regulated by the Tennessee Department of Commerce and Insurance (TDCI), headed by a commissioner appointed by the governor - not elected. The commissioner licenses producers, agencies, and adjusters; reviews forms and rates where filing is required; examines market conduct; and may issue fines or suspend/revoke a license only after notice and an opportunity for a hearing.
Licensing producers
A candidate must pass the state licensing exam for the requested line of authority (life; accident and health; property; casualty; personal lines; surplus lines), submit an application with fingerprints/background check, and pay the required fee. Resident licenses run on a two-year (biennial) term and must be renewed before expiration. Separately, an insurer must appoint a producer before that producer may solicit business for it; an appointment is not the same as a license.
Continuing education
Tennessee producers complete 24 credit hours every two years, including at least 3 hours of ethics. Only approved courses count, and records must be retained for audit.
Market conduct rules
The producer holds premiums in a fiduciary capacity - no commingling with personal funds. Rebating, twisting, misrepresentation, and unfair claim settlement practices are prohibited. Producers must promptly report name/address changes and any administrative action taken against them in another state.
Tennessee-specific numbers
Private passenger auto liability minimums are 25/50/25 ($25,000 per person / $50,000 per accident BI; $25,000 PD), and uninsured motorist coverage must be issued at limits equal to the liability limits unless the insured rejects it in writing. The Tennessee guaranty association (TIGA) responds to covered claims of insolvent P&C insurers, generally capped at $300,000 per claim.
Traps
Questions love to test: commissioner appointed vs. elected; CE as biennial (not annual); UM as an opt-out, not an opt-in; license vs. appointment; and confusing a producer's duty to the insurer with a duty to the applicant.
Rule of thumb: license → appointment → solicit. No appointment, no business written for that carrier.