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TennesseeSB 1270114th General Assembly (2025-2026)SenateWALLET

AN ACT to amend Tennessee Code Annotated, Title 56 and Section 68-1-115, relative to insurance.

Sponsored By: Jack Johnson (Republican)

Became Law

Insurance Companies, Agents, Brokers, Policies

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 2 benefits, 0 costs, 3 mixed.

Easier to read insurance policies

The law requires insurance policy forms to be easier to read. Text must score at least 40 on the Flesch test or an equivalent. Forms over 3,000 words must include a table of contents or index. No part of a form may get unfair extra emphasis. The law defines what counts as policy “text” and what does not, and insurers must identify and certify any excluded language. The word “printed” is removed, allowing modern formats.

New rules for farm and personal insurance

Beginning January 1, 2026, the law updates what counts as personal risk insurance. It includes one- to four-family homes (including mobile homes), household goods, private passenger nonfleet vehicles, certain pleasure boats, farm risks insured on personal policies, and rental-incidental coverage up to 90 days. Commercial risk insurance includes farm premises, buildings, machinery, vehicles, livestock, and other farm property that are not personal risk. Also starting January 1, 2026, having farm risks insured on a commercial policy cannot be used to decide if land is legally farm or agricultural. These rules apply to policies issued, delivered, amended, or renewed to take effect on or after January 1, 2026.

Tighter reinsurance and credit rules

Starting July 1, 2025, letters of credit used as security must be clean, irrevocable, and unconditional. They must be issued or confirmed by a qualified U.S. financial institution by December 31 of the filing year and held by or in trust for the ceding company by the filing date. A letter that met issuer standards when issued remains acceptable until it expires, is renewed, extended, modified, or amended, even if the bank later falls short. The commissioner cannot remove certain defined reciprocal jurisdictions from the list. Some items under insurer credit rules must also meet a linked set of conditions in another statute. A related citation is updated.

Employers get health claims reports

Plan sponsors or administrators can request a written claims experience report. The insurer must respond within 30 days. The report shows up to 36 months of monthly paid claims, premiums, covered employee counts by tier, and claims over $75,000. If requested before coverage ends, an updated report is due within 30 days after termination. Use is limited to what HIPAA allows, and federal ERISA rules may override this law.

Old insurance sections repealed

The law repeals sections 56-7-2312 through 56-7-2322 of the insurance code. It also deletes a cross-reference to § 56-7-2312 from § 68-1-115. The text does not add new transition rules.

Sponsors & Cosponsors

Sponsor

  • Jack Johnson

    Republican • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 134 • No: 0

House vote • 3/27/2025

FLOOR VOTE: REGULAR CALENDAR PASSAGE ON THIRD CONSIDERATION 3/27/2025

Yes: 95 • No: 0

Senate vote • 3/13/2025

FLOOR VOTE: as Amended Third Consideration 3/13/2025

Yes: 32 • No: 0

Senate vote • 3/4/2025

SENATE COMMERCE AND LABOR COMMITTEE

Yes: 7 • No: 0

Actions Timeline

  1. Pub. Ch. 183

    5/2/2025

  2. Effective date(s) 04/11/2025, 07/01/2025, 01/01/2026

    5/2/2025

  3. Signed by Governor.

    4/11/2025Senate

  4. Signed by H. Speaker

    4/2/2025House

  5. Transmitted to Governor for action.

    4/2/2025Senate

  6. Signed by Senate Speaker

    4/1/2025Senate

  7. Enrolled and ready for signatures

    3/28/2025Senate

  8. Subst. for comp. HB.

    3/27/2025House

  9. Am. withdrawn. (Amendment 1 - HA0077)

    3/27/2025House

  10. Passed H., Ayes 95, Nays 0, PNV 1

    3/27/2025House

  11. Rcvd. from S., held on H. desk.

    3/17/2025House

  12. Senate adopted Amendment (Amendment 1 - SA0070)

    3/13/2025Senate

  13. Passed Senate as amended, Ayes 32, Nays 0

    3/13/2025Senate

  14. Engrossed; ready for transmission to House

    3/13/2025Senate

  15. Placed on Senate Regular Calendar for 3/13/2025

    3/11/2025Senate

  16. Recommended for passage with amendment/s, refer to Senate Calendar Committee Ayes 7, Nays 0 PNV 0

    3/4/2025Senate

  17. Placed on Senate Commerce and Labor Committee calendar for 3/4/2025

    2/25/2025Senate

  18. Placed on Senate Commerce and Labor Committee calendar for 3/4/2025

    2/25/2025Senate

  19. Passed on Second Consideration, refer to Senate Commerce and Labor Committee

    2/12/2025Senate

  20. Introduced, Passed on First Consideration

    2/10/2025Senate

  21. Filed for introduction

    2/6/2025Senate

Bill Text

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