Score Big on the Tennessee Life Producer Exam 2025 – Ready, Set, Insure!

The statement that referral fees can be paid in any amount is not true because there are often specific regulations governing referral fees in insurance practices. These regulations are typically in place to prevent potential abuses and to ensure that referral practices are fair and transparent. Regulatory bodies may set limits on the amount that can be paid as referral fees to maintain ethical standards and protect consumers from excessive fees that could influence their choices inappropriately.

In contrast, the other statements reflect important regulatory requirements. Filing referral fees with the Commissioner ensures oversight and compliance with applicable laws. Requiring referrals to be documented in writing also helps to maintain transparency and accountability in the transaction. Lastly, the necessity of approval by the Commissioner further enforces the idea that referral fees must adhere to established guidelines to prevent conflicts of interest and promote ethical practices in the insurance industry.