In an effort to aid the state of Tennessee’s economic recovery, the Tennessee Department of Commerce and Insurance (TDCI) announces a new program to provide temporary insurance producer licenses to qualified individuals who have been unable to complete their licensing tests because of the COVID-19 pandemic.
TDCI, which is Tennessee’s insurance regulator, has seen a decrease in the number of applicants obtaining insurance producer licenses after testing centers closed across Tennessee because of health concerns due to the COVID-19 pandemic. Effective immediately, TDCI will issue temporary producer licenses to qualified applicants who meet the requirements for licensure without requiring examination for life, accident and health, property, casualty, and personal lines, subject to qualifying conditions.
“Reopening Tennessee’s economy and getting Tennesseans back to work is a priority of Gov. (Bill) Lee’s administration,” TDCI Commissioner Hodgen Mainda said in a release. “It is more important now than ever before that we remove barriers in order to help Tennesseans support themselves and their families. If you are an insurance producer applicant who only lacks taking an insurance producer’s test, I urge you to contact our team today and secure a temporary producer’s license.”
Though the temporary insurance producer license program helps insurance producers get to work, there are numerous safeguards in place that will protect consumers (e.g. all temporary licenses expire in 180 days requiring licensees to take a producer’s exam, applicants must submit a fingerprint-based background check, among other safeguards) during this period.
“The temporary producer license program successfully strikes a balance between helping prospective licensees obtain a license so they can work and consumer protection,” TDCI Assistant Commissioner for Insurance Rachel Jrade-Rice said. “If consumers ever have a question or an issue related to an individual with a temporary insurance license, they should contact our team immediately and file a complaint.”
Applicants meeting the requirements for licensure will be issued temporary producer licenses without an examination for life, accident and health, property, casualty and personal lines of insurance, subject to the following conditions:
- “All temporary licenses will expire in 180 days. Any producer who completes the appropriate exam (if available) within the 180 days will have his/her license type changed from a temporary to regular license without new application or fees. After 180 days, if the applicant has not taken or successfully passed an exam, the temporary license will expire, and the individual will need to reapply and meet the regular requirements.
- Individuals seeking temporary licensure must complete Tennessee Bureau of Investigation fingerprinting. Information can be found on our website. Click on ‘Fingerprinting Information.’ Individuals who have been convicted of a felony are not eligible for temporary licenses.
- Temporary producer licenses are subject to cancellation or revocation at the discretion of the Commissioner without hearing under Title 4, Chapter 5 of the Tennessee Code.
- The temporary producer license allows the producer to operate in Tennessee as a resident temporary producer. Temporary producers are not eligible for non-resident licenses in other states.
- A sponsoring insurer must assure that the temporarily licensed producers’ sales activities and training are coordinated by a licensed insurance producer in good standing with the Department or where applicable, a FINRA-licensed registered principal. Company appointments or terminations will not be processed for a temporary licensee; however, company appointment will be required after the licensee has passed the exam and converted the temporary license to a regular license.
- Any active temporary producer license issued pursuant to this Bulletin may be converted to a regular producer license by completion of all prerequisites of a license for the desired line or lines of insurance, including meeting all examination requirements pursuant to the applicable statutes within 180 days of issuance of temporary or prior to the expiration of the temporary license. No additional fee shall be required in association with the issuance of the regular producer license. Notification of passing exam results should be sent to the Agent Licensing Section at [email protected] or faxed to 615-532-2862 to convert the temporary license to a regular producer license.
- Recipients of such temporary producer licenses will be subject to any and all limitations on the authority of such temporary licenses pursuant to Tennessee law.
- The issuance of temporary producer licenses will discontinue as soon as producer examinations are available.”