Rules & Regulations of the State of Tennessee
Title 0780 - Commerce and Insurance
Subtitle 0780-01 - Insurance Division
Chapter 0780-01-17 - Rules and Regulations Covering the Sale, Issuance and Delivery of Both Individual and Group Variable Annuity Contracts and Variable Life Contracts
Section 0780-01-17-.09 - LICENSE REQUIRED OF AGENTS

Universal Citation: TN Comp Rules and Regs 0780-01-17-.09

Current through September 24, 2024

(1)

(a) No agent shall be eligible to sell or offer for a variable contract unless prior to making any solicitation or sale of such contract, he also be licensed as a variable contract agent. However, any agent who is licensed as a variable contract agent on the effective date of this rule shall continue to be licensed as a variable contract agent.

(b) Any agent who participates only in the sale or offering for sale of variable contracts that are not registered under the Federal Securities Act of 1933 need not be licensed as a variable contract agent.

(2) Any agent applying for a license as a variable contract agent shall do so by filing with this Department his application. All such applications shall be in writing on uniform forms prescribed by the Commissioner and shall be accompanied by a filing fee of twenty dollars ($20.00). Such filing fee shall not be refundable. The applicant shall, upon oath, answer such interrogatories as the Commissioner may require in such application, and the application shall be certified by an authorized representative of an insurance company lawfully authorized in the state to write variable contracts.

(3) There shall not be a written examination for a variable contract agent; however, as a prerequisite to be so licensed as a variable contract agent, the following requirements shall be met:

(a) The applicant shall be a duly licensed life insurance agent at the time he files his application for a variable contract license.

(b) He shall be duly qualified by examination under one or more of the following:

1. Any State Securities Sales Examination accepted by the Securities and Ex-change Commission;

2. The National Association of Securities Dealers, Inc. Examination for Prin-cipals, or Examination for Qualification as a Registered Representative;

3. The various securities examinations required by the New York Stock Exchange, the American Stock Exchange, Pacific Stock Exchange, or any other registered national securities exchange;

4. The Securities and Exchange Commission test given pursuant to Section 15(b) (8) of the Securities Exchange Act of 1934.

(1) Except as modified by this Rule, state statutes and Rules of this Department governing the licensing of life insurance agents shall apply hereto.

(2) Each variable contract agent shall be required to hold a Certificate of Authority with any insurer for which he is to place a contract of insurance. All new, renewal or duplicate certificates shall be issued in accordance with T.C.A. § 56-6-120. The termination of such a certificate shall be in accordance with § 56-6-121.

(3) Any person licensed in this State as a variable contract agent shall immediately report to the Commissioner (a) any suspension or revocation of his variable contract agent's license or life insurance agent's license in any other State or Territory of the United States, (b) the imposition of any disciplinary sanction (including suspension or expulsion from membership, suspension or revocation of or denial of registration) imposed upon him by any national securities exchange, or national securities association, or any federal, or state or territorial agency with jurisdiction over securities or contracts on a variable basis, (c) any judgment or injunction entered against him on the basis of conduct deemed to have involved fraud, deceit, misrepresentation or violation of any insurance or securities law or regulation.

(1) The Commissioner may reject any application or suspend or revoke or refuse to renew any variable contract agent's license upon any ground that would bar such applicant or such agent from being licensed to sell Life insurance contracts in this State. The rules governing any proceeding relating to the suspension or revocation of a life insurance agent's license shall also govern any proceeding for suspension or revocation of a variable contract agent's license.

(2) A non-resident applicant may qualify for a variable contract license only if he holds a like license in his state of domicile and that such other state and this state has a reciprocal agreement for the purpose of licensing variable contract agents.

Authority: T.C.A. § 56-3-508.

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