Tennessee Private Investigator Licensing Practice Exam

Under what condition can an individual conducting undercover work be exempted from needing a Private Investigator license?

1. If employed by a law firm

2. If employed by a private business investigating its own internal affairs

3. If investigating for law enforcement

4. If working independently

The correct answer is: If employed by a private business investigating its own internal affairs

An individual conducting undercover work can be exempted from needing a Private Investigator license when they are employed by a private business investigating its own internal affairs. This exemption is grounded in the principle that companies have the right to monitor and investigate their own operations to prevent fraud, theft, or other internal misconduct. This means that when employees undertake investigative activities as part of their job responsibilities for their employer, such investigations are inherently linked to the business's interests. These actions are typically regarded as an extension of the company's operational rights rather than independent investigative services that would require license regulation. Other circumstances, such as working for law enforcement or independently, involve activities that are typically regulated under state laws governing private investigations, thus necessitating a valid license.