Tennessee Life Producer Practice Exam

Which entity has the authority to regulate insurance in Tennessee?

1. Department of Insurance

2. Commissioner of Commerce and Insurance

3. Insurance Advisory Board

4. State Senate

The correct answer is: Commissioner of Commerce and Insurance

The entity with the authority to regulate insurance in Tennessee is the Commissioner of Commerce and Insurance. This individual is responsible for overseeing the insurance industry within the state, ensuring compliance with laws and regulations designed to protect consumers and maintain the integrity of the insurance market. The Commissioner has the power to enforce insurance statutes, issue licenses, and approve rates and forms, among other regulatory responsibilities. In Tennessee, the Department of Insurance operates under the authority of the Commissioner but does not independently possess regulatory power; rather, it serves as the administrative arm supporting the Commissioner's responsibilities. While the Insurance Advisory Board may provide recommendations and advice regarding insurance practices, it does not have regulatory authority. The State Senate, while involved in creating and modifying laws related to insurance, does not have the direct power to regulate the industry. Thus, the Commissioner is the correct answer as the chief regulatory authority in the state.