Final answer:
An applicant for an agency contract license, an applicant for a limited lines license, and a nonresident producer may obtain a producer's license but may NOT sell, solicit, or negotiate a contract of insurance in Tennessee. A business entity, such as a corporation or partnership, may obtain a producer's license and engage in selling, soliciting, or negotiating insurance contracts in Tennessee.
Step-by-step explanation:
A producer's license allows an individual or business entity to sell, solicit, or negotiate insurance contracts in Tennessee. However, there are certain restrictions for different types of licenses. An applicant for an agency contract license, an applicant for a limited lines license, and a nonresident producer may obtain a producer's license but may NOT sell, solicit, or negotiate a contract of insurance in Tennessee. On the other hand, a business entity, such as a corporation or partnership, may obtain a producer's license and engage in selling, soliciting, or negotiating insurance contracts in Tennessee.