17 Free Tennessee Life & Health Practice Questions: Tennessee Laws and Departmental Rules (Life and A&H) (2026)
How to Use This Set
The common Tennessee block is 14 items on each exam: Section V on the Life exam and Section VI on the Accident and Health exam. It is the same material on both, so learn it once. Tennessee Code Annotated Title 56, Chapter 6 (licensing of producers and solicitors) is the backbone.
The questions test a statute section or rule against a scenario. Memorize the pairing, for example investigations are §56-6-120 and the Life and Health Guaranty Association is §§56-12-201 to 56-12-220.
Practice Questions 1-6: Commissioner's Powers, Definitions, Rebating, CE and Fiduciary Duty
The subpoena power in §56-6-120, the definition of insurance producer, rebating, continuing education, the Guaranty Association and the producer's fiduciary duty.
Question 1 (Chapter 7)
During an investigation of alleged fraudulent marketing practices, the Commissioner issues a subpoena to a producer’s office demanding employee payroll records. The producer refuses, claiming the request exceeds the Commissioner’s authority. Is the producer correct?
- A) Yes, the Commissioner may only request policy documents, not payroll records
- B) Yes, because payroll records are protected by federal labor law and cannot be disclosed to the Commissioner
- C) No, but the producer must first obtain a court order before complying
- D) No, the Commissioner’s investigative powers under §56-6-120 include the authority to subpoena any books, records, or documents relevant to the investigation
Show answer & explanation
Answer: D
Tenn. Code Ann. §56-6-120 expressly grants the Commissioner the power to examine books, records, and documents of any licensee or insurer during an investigation. The subpoena is valid; the producer’s refusal is not justified. Options A and C misinterpret the scope of the statute, and D adds an unnecessary court order.
Question 2 (Chapter 7)
Jordan, age 22, has been living in Nashville for three years and wishes to sell health insurance. Which definition best describes Jordan’s required licensure status?
- A) Business entity
- B) Limited lines producer
- C) Unauthorized insurer
- D) Insurance producer
Show answer & explanation
Answer: D
Tenn. Code Ann. §56-6-102 defines an "insurance producer" as a person required to be licensed to sell, solicit, or negotiate insurance. Jordan is an individual seeking a producer license. A business entity is an organization, a limited lines producer is restricted to certain lines, and an unauthorized insurer is an insurer without a license.
Question 3 (Chapter 7)
During a sales meeting, a producer offers a client a $50 cash rebate for signing a new policy, stating it is a special promotion. Which of the following statements is correct regarding this practice?
- A) Rebating is permissible if the client receives a tangible benefit
- B) Rebating is allowed if the producer discloses the rebate to the Commissioner
- C) Rebating is only prohibited for property and casualty lines
- D) Rebating is prohibited under Tenn. Code Ann. §56-6-125 and related unfair practice statutes
Show answer & explanation
Answer: D
§56-6-125 and §§56-8-104‑105 expressly prohibit rebating, defined as giving any consideration to induce the purchase of insurance. Disclosure or client benefit does not make it permissible, and the prohibition applies to all lines, not just P&C.
Question 4 (Chapter 7)
After passing the Life exam, a producer must complete continuing education (CE) to maintain the license. Which rule sets the CE requirement and its biennial hour count?
- A) Dept. Rule 0780-1-56, requiring 24 hours every two years
- B) Dept. Rule 0780-01-86, requiring 30 hours every three years
- C) §56-6-107, requiring 12 hours annually
- D) §56-6-112, requiring 18 hours biennially
Show answer & explanation
Answer: A
Dept. Rule 0780-1-56 (referenced in §56-6-107) mandates 24 hours of CE biennially, including ethics hours. Rule 0780-01-86 relates to annuity suitability and is not the CE rule. The other sections do not set CE hour requirements.
Question 5 (Chapter 7)
A policyholder’s annuity contract is placed in the Tennessee Life and Health Guaranty Association after the insurer becomes insolvent. Which statutory range governs the association’s obligations to the policyholder?
- A) §56-12-201 through §56-12-220
- B) §56-6-102 through §56-6-110
- C) §56-26-108 through §56-26-132
- D) §56-8-104 through §56-8-105
Show answer & explanation
Answer: A
The Life and Health Guaranty Association’s powers and duties are set forth in Tenn. Code Ann. §§56-12-201 to 56-12-220. The other sections pertain to producer definitions, health insurance provisions, and unfair practices, respectively.
Question 6 (Chapter 7)
Which statement accurately reflects the fiduciary duty of a Tennessee insurance producer?
- A) The producer must place the client’s interests above the producer’s personal gain.
- B) The producer must act in the best interest of the insurer only.
- C) The producer must disclose all material facts to the insured.
- D) The producer must guarantee the performance of the policy.
Show answer & explanation
Answer: A
Section 56-6-116 defines a producer as a fiduciary who must act with honesty, integrity, and in the best interest of the client, placing the client's interests above personal gain. Therefore option A is correct. Option B is wrong because the fiduciary duty runs to the client, not solely to the insurer. Option C, while good practice, does not capture the core fiduciary definition. Option D is incorrect because no producer can guarantee a policy's performance.
Get the 25-question sample set by email
Want a full-exam practice set to study offline? Drop your email — we'll send 25 questions across every content area, each with the answer and explanation.
No spam. Just the questions and one optional follow-up.
Practice Questions 7-12: Renewal, Advertising, Compensation, Penalties, Lapse and Residency
License renewal, false advertising, compensation from both sides, civil penalties, what a lapse means and what happens when a producer moves out of Tennessee.
Question 7 (Chapter 7)
How often must a Tennessee insurance producer renew their license, assuming no suspension or revocation?
- A) Every year
- B) Every three years
- C) Every two years
- D) Every five years
Show answer & explanation
Answer: C
Section 56-6-107 requires biennial (every two years) renewal of a producer's license. Thus C is correct. The other intervals are not prescribed by Tennessee law.
Question 8 (Chapter 7)
An insurer’s advertisement states, "We offer the lowest rates in Tennessee," without any supporting data or study. Which provision is most likely being violated?
- A) Section 56-8-104 (false or misleading advertising)
- B) Section 56-6-125 (unfair practices)
- C) Section 56-8-105 (unfair claims settlement practices)
- D) Section 56-6-113 (compensation and referrals)
Show answer & explanation
Answer: A
Section 56-8-104 prohibits false or misleading advertising. Claiming to have the lowest rates without substantiation is a false advertising violation, so A is correct. Section 56-6-125 covers broader unfair practices but the specific issue here is false advertising. Sections 56-8-105 and 56-6-113 are unrelated.
Question 9 (Chapter 7)
A producer licensed in Tennessee sells a variable annuity to a client. The producer received compensation from the insurer for the sale and also accepted a consulting fee from the client for financial advice related to the annuity purchase. Which statement best describes the legality of this arrangement under Tennessee law?
- A) This is permitted as long as the consulting fee is disclosed to the insurer.
- B) This is prohibited because it creates a conflict of interest and violates the fiduciary duty to the client.
- C) This is permitted only if the client provides written consent to both compensation streams.
- D) This is prohibited under Tenn. Code Ann. § 56-6-113, which forbids producers from receiving compensation from both the insurer and the insured for the same transaction.
Show answer & explanation
Answer: D
Tennessee Code Annotated § 56-6-113 explicitly states that no insurance producer shall receive any compensation, directly or indirectly, from both the insurer and the insured for the same transaction. Accepting a consulting fee from the client while also receiving a commission from the insurer for the same annuity sale is a direct violation of this statute. While this arrangement may also raise fiduciary concerns (making option B plausible), the specific legal prohibition is found in § 56-6-113. Options A and C are incorrect because disclosure or client consent does not override the statutory ban on dual compensation.
Question 10 (Chapter 7)
After a hearing, the Commissioner of Commerce and Insurance finds that a producer violated Tennessee's unfair claims settlement practices by failing to acknowledge and act promptly upon communications regarding a claim. The Commissioner orders the producer to pay a civil penalty. Under Tenn. Code Ann. § 56-6-112(e), how does the maximum penalty the Commissioner may impose change if the violation is found to be willful?
- A) The maximum penalty increases for a willful violation.
- B) The maximum penalty is the same whether or not the violation was willful.
- C) No civil penalty may be imposed unless the violation was willful.
- D) The maximum penalty decreases for a willful violation.
Show answer & explanation
Answer: A
Tenn. Code Ann. § 56-6-112(e) allows the Commissioner to impose a civil penalty for violations such as unfair claims settlement practices (§ 56-8-105), and the statute sets a higher maximum penalty when the violation is found to be willful. Option B is incorrect because the willful/non-willful distinction does change the maximum. Option C is incorrect because a civil penalty may be imposed regardless of willfulness; willfulness only affects the ceiling. Option D is incorrect because willfulness increases, not decreases, the maximum penalty.
Question 11 (Chapter 7)
A licensed insurance producer in Tennessee has not renewed their license by the expiration date. The license lapses. What is the producer's status regarding the ability to sell, solicit, or negotiate insurance in Tennessee?
- A) The producer may continue to sell insurance for a 30-day grace period while the renewal is processed.
- B) The producer may continue to service existing policies but cannot write new business until the license is renewed.
- C) The producer's authority to act as an insurance producer ceases immediately upon the license expiration date.
- D) The producer's license is automatically suspended, and they must pay a reinstatement fee to regain authority.
Show answer & explanation
Answer: C
Under Tennessee law, an insurance producer's authority to sell, solicit, or negotiate insurance is directly tied to the validity of their license. When a license expires and is not renewed, the producer's authority ceases immediately on the expiration date. There is no statutory grace period for continuing to sell insurance (option A is incorrect). While servicing existing policies might seem permissible, the producer cannot engage in any activity requiring a license, including selling new business or servicing that involves solicitation or negotiation (option B is incorrect and overly permissive). The license does not automatically become suspended upon expiration; it simply lapses (option D is incorrect).
Question 12 (Chapter 7)
An insurance producer licensed in Tennessee moves to another state and establishes residency there. The producer wishes to continue selling insurance to Tennessee residents. What must the producer do to maintain this authority?
- A) Apply for a nonresident Tennessee license and provide certification of licensure from their new home state.
- B) Nothing; the Tennessee license remains valid regardless of the producer's state of residence.
- C) Cancel the Tennessee license and apply for a new resident license in their new state of residence.
- D) Continue using the Tennessee license but notify the Commissioner of the address change within 30 days.
Show answer & explanation
Answer: A
Under Tenn. Code Ann. § 56-6-108, a nonresident license is required for an individual who is not a resident of Tennessee but wishes to transact insurance in the state. If a producer moves out of Tennessee and establishes residency elsewhere, their resident license is no longer valid. To continue selling insurance to Tennessee residents, they must obtain a nonresident license by applying through NIPR or TDCI and submitting a certification of licensure from their new home state. Option B is incorrect because residency is a requirement for a resident license. Option C is incorrect because canceling the Tennessee license would remove their authority entirely. Option D is incorrect because simply notifying the Commissioner of an address change does not change the license type; a resident license requires Tennessee residency, and without it, the producer must hold a nonresident license to act in the state.
Practice Questions 13-17: Licensing Eligibility, Misrepresentation, Subpoenas, Discrimination and Referrals
The statutory source of license eligibility, misrepresentation on an application, a refusing insurer, unfair discrimination and referral fees.
Question 13 (Chapter 7)
A Tennessee resident applies for an insurance producer license. The applicant is 17 years old, has resided in Tennessee for 10 months, and has no criminal history. The Commissioner denies the application. Which statutory provision supports the denial based on the applicant's age?
- A) Tenn. Code Ann. § 56-6-103(a)(1)
- B) Tenn. Code Ann. § 56-6-104(a)
- C) Tenn. Code Ann. § 56-6-106(a)
- D) Tenn. Code Ann. § 56-6-105(a)(1)
Show answer & explanation
Answer: D
Tenn. Code Ann. § 56-6-105(a)(1) requires applicants to be at least 18 years of age. The applicant is 17, so the Commissioner properly denied the application. Option A references general qualifications but does not specify the age requirement. Option B addresses application procedures, not age. Option C concerns residency, which the applicant satisfies (10 months establishes Tennessee residency), so it does not support denial.
Question 14 (Chapter 7)
A Tennessee insurance producer is found to have made a material misrepresentation on an insurance application with intent to deceive the insurer. Under Tennessee law, which statutory provision primarily governs the Commissioner's authority to take disciplinary action against the producer for this unfair practice?
- A) Tenn. Code Ann. § 56-6-125, addressing compensation and referrals.
- B) Tenn. Code Ann. § 56-8-104, prohibiting false advertising and misrepresentation.
- C) Tenn. Code Ann. § 56-6-116, defining the fiduciary duty of a producer.
- D) Tenn. Code Ann. § 56-12-201, establishing the Life and Health Guaranty Association.
Show answer & explanation
Answer: B
Making a material misrepresentation on an application with intent to deceive is a form of false advertising or misrepresentation, which is specifically prohibited by Tenn. Code Ann. § 56-8-104. This statute is part of the unfair practices section and gives the Commissioner authority to act against such conduct. Option A is incorrect as § 56-6-125 deals with compensation and referrals, not application fraud. Option C is incorrect as § 56-6-116 defines fiduciary duty but does not specifically govern misrepresentation on applications. Option D is incorrect as § 56-12-201 establishes the Guaranty Association, which is unrelated to producer misconduct in application processes.
Question 15 (Chapter 7)
During an investigation into an insurer's claims practices, the Commissioner issues a subpoena for the insurer's claim adjustment files. The insurer refuses to produce the documents. Which statement is correct under Tennessee law?
- A) The insurer may refuse if the documents are deemed proprietary or confidential.
- B) The Commissioner lacks authority to subpoena documents from an insurer during an investigation.
- C) The insurer must comply with the subpoena, as the Commissioner has the power to examine books, records, and documents under Tenn. Code Ann. § 56-6-120.
- D) The Commissioner must first obtain a court order before the insurer is obligated to produce the documents.
Show answer & explanation
Answer: C
Tenn. Code Ann. § 56-6-120 expressly grants the Commissioner the power to examine the books, records, and documents of any licensee or insurer during an investigation, and to summon witnesses and compel testimony. The insurer cannot refuse based on claims of confidentiality or proprietary information, and no prior court order is required. Option A is incorrect because confidentiality does not override the Commissioner's investigative authority. Option B is false; the Commissioner does have this authority. Option D is incorrect because the Commissioner's subpoena power under § 56-6-120 does not require prior court approval.
Question 16 (Chapter 7)
A Tennessee insurance producer is accused of violating the state's unfair discrimination statute by refusing to issue a life insurance policy to an applicant solely based on their zip code, which correlates with a higher-risk demographic. The producer argues that the decision was based on legitimate actuarial data showing higher claim frequency in that area. Under Tennessee law, how will the Commissioner likely evaluate this defense?
- A) The defense is valid because zip code is a neutral, geographic factor not tied to protected characteristics.
- B) The defense is invalid if the zip code is used as a proxy for race, ethnicity, or other prohibited factors, regardless of actuarial data.
- C) The defense is valid only if the producer can show the applicant was offered a different policy at a standard rate.
- D) The defense is invalid because all geographic discrimination is prohibited under Tenn. Code Ann. § 56-8-104.
Show answer & explanation
Answer: B
Under Tenn. Code Ann. § 56-8-104, unfair discrimination includes using any factor that serves as a proxy for prohibited characteristics like race or ethnicity, even if the factor itself (e.g., zip code) appears neutral. Actuarial justification does not override this prohibition if the practice results in unfair discrimination. Option A is incorrect because zip code can be a proxy for protected classes. Option C misstates the law; offering an alternative does not cure discriminatory underwriting. Option D is too broad; geographic factors are not per se prohibited but are scrutinized for discriminatory impact.
Question 17 (Chapter 7)
A Tennessee insurance producer receives a referral fee from a real estate agent for each client the producer refers who purchases a title insurance policy. The producer discloses this arrangement to the client in writing before the insurance transaction is completed. Under Tennessee law, which statement best describes the legality of this compensation arrangement?
- A) The arrangement is illegal because referral fees from unlicensed entities are always prohibited under Tenn. Code Ann. § 56-6-113.
- B) The arrangement is legal only if the real estate agent is also a licensed insurance producer in Tennessee.
- C) The arrangement may be permissible if properly disclosed and not constituting a rebate to the client, as governed by Tenn. Code Ann. §§ 56-6-113 and 56-6-125.
- D) The arrangement is illegal because title insurance is not regulated by the Tennessee Department of Commerce and Insurance.
Show answer & explanation
Answer: C
Tenn. Code Ann. § 56-6-113 permits referral fees for insurance-related services, and § 56-6-125 prohibits undisclosed compensation that could constitute rebating or unfair inducement. Proper written disclosure to the client before the transaction helps ensure transparency and compliance, making the arrangement potentially permissible. Option A is incorrect because referral fees are not per se illegal; disclosure and context matter. Option B is incorrect; the real estate agent does not need to be an insurance producer. Option D is incorrect; while title insurance is primarily regulated by TDCI, the legality hinges on disclosure and anti-rebating rules, not the regulatory title.
The Mistakes That Cost Marks
Naming the wrong section. Investigations are §56-6-120, producer definitions §56-6-102, compensation and referrals §56-6-113, fiduciary §56-6-116, unfair practices including rebating §56-6-125, false advertising §56-8-104, unfair claims settlement §56-8-105.
Treating a rebate as a promotion. A cash rebate to induce a purchase is prohibited under §56-6-125 whatever it is called.
Forgetting the CE figure. Continuing education is 24 hours every two years, including 3 ethics hours.
Confusing the guaranty association with licensing. The Life and Health Guaranty Association sits in §§56-12-201 through 56-12-220.
Thinking the Commissioner needs a court order to examine records. The questions treat §56-6-120 as giving the Commissioner the power to examine books, records and documents.
Mixing up resident and nonresident status. Residency decides the license type, with resident and nonresident provisions in §§56-6-106 and 56-6-108.
Your Next Step
Run the full set once without looking at the answers, then reread the explanations for every miss. When the pattern is clear, try the free course preview and the rest of the free Tennessee Life & Health practice questions.
Free: 25 Tennessee L&H practice questions
Liked this article? Get 25 exam-style questions emailed to you — with full answer explanations, no credit card. Closest thing to studying offline.
No spam. Just the questions and one optional follow-up.
Study this topic with LanePrep
Listen to these audio chapters on your commute — no screen required.
Related Articles
How to Pass the Tennessee Life & Health Exam on the First Try (2026)
10 min read
$130–160 + Fingerprints: Tennessee Life & Health License Cost 2026
9 min read
25 Free Tennessee Life & Health Exam Practice Questions (2026)
25 min read
Is the Tennessee Life & Health Exam Hard? Pass Rates and Difficulty (2026)
5 min read
17 Free Tennessee Life & Health Practice Questions: Life Policy Riders, Provisions and Options (2026)
12 min read
17 Free Tennessee Life & Health Practice Questions: Life Applications, Underwriting and Retirement Concepts (2026)
12 min read
17 Free Tennessee Life & Health Practice Questions: Accident & Health Policy Types (2026)
12 min read