Title 56, Insurance

This part is known and may be cited as the “Travel Insurance Producer Limited License Act.”

(1) As used in this part: (1) “Commissioner” means the commissioner of commerce and insurance;(2) “Designated responsible producer” or “DRP” means a person designated by a travel insurance supervising entity pursuant to § 56-6-1403(a)(2)(C);(3) “Insurer” has the same meaning as d…

(a) Notwithstanding any other law to the contrary:(1) Pursuant to the Tennessee Insurance Producer Licensing Act of 2002, compiled in part 1 of this chapter, the commissioner may issue to an individual or business entity that has filed with the commissioner an application in a fo…

Notwithstanding any other law, a travel retailer whose insurance-related activities, and those of its employees and authorized representatives, are limited to offering and disseminating travel insurance on behalf of and under the direction of a travel insurance supervising entity…

Travel insurance may be provided under an individual policy or under a group or master policy.

As the insurer designee, the travel insurance supervising entity is responsible for the acts of the travel retailer and shall use reasonable means to ensure compliance by the travel retailer with this part.

(a) The commissioner may take any action or combination of actions authorized pursuant to § 56-2-305 or § 56-6-112 against any limited lines travel insurance producer, travel insurance supervising entity, or travel retailer licensed or approved pursuant to this part. (b) If the c…

(a) In addition to other powers permitted to banks by title 45, a state bank may own, operate or manage an insurance company offering only surety insurance, as defined in § 56-2-201(6)(E). (b) An insurance company owned by a bank shall comply with all Tennessee law applicable to …

(1) Insurance agents licensed in this state may charge, receive and collect on the principal balance of unpaid insurance and bond premiums a time-price differential not to exceed the rate now provided for retail merchants under the Retail Installment Sales Act, compiled in title …

The time-price differential provided for in this part shall be computed in the same manner as is provided in the Retail Installment Sales Act, as set out in § 47-11-103(d).

(1) In the event time-price differential charges are made pursuant to this part, the purchaser of insurance must agree to the charges in writing, and the instrument must contain: (1) The cash price of the insurance policy or bond and the amount of the initial payment, if any; (2)…

The buyer of insurance may prepay in full at any time before maturity the unpaid balance due, and in so paying the unpaid balance, shall receive a refund credit as provided under § 47-11-103(h).

No agent shall make time-price differential charges in excess of the schedule provided in this part, and willful violation of this part is a Class C misdemeanor.

Time-price differential transactions as described in this part shall not be deemed to be loans or forbearances of money or things of value or the making of the loans or forbearances, nor shall they be regulated by or subject to title 45, chapter 5.

This part does not apply to agents who finance premiums through a Tennessee corporation, or a corporation domesticated to transact business in Tennessee, that is either an insurer, a subsidiary of an insurer or owned by a group of insurers, and that confines its business to the f…

(1) As used in this part, “administrator” means any person, company, corporation, partnership, association or other legal entity that collects charges or premiums from, or that adjusts or settles claims on, residents of this state in connection with life or health insurance cover…

(a) No administrator shall act as administrator without a written agreement between the administrator and the insurer, and the written agreement shall be retained as part of the official records of both the insurer and the administrator for the duration of the agreement and five …

Whenever an insurer utilizes the services of an administrator under the terms of a written contract as required in § 56-6-402, the payment to the administrator of any premiums or charges for insurance by or on behalf of the insured shall be deemed to have been received by the ins…

(a) Every administrator shall maintain at its principal administrative office, for the duration of the written agreement referred to in § 56-6-402 and five (5) years thereafter, adequate books and records of all transactions between it, insurers and insured persons. The books and…

An administrator may use only advertising pertaining to the business underwritten by an insurer that has been approved by the insurer in advance of its use.

(1) All insurance charges or premiums collected by an administrator on behalf of or for an insurer or insurers, and return premiums received from the insurer or insurers, shall be held by the administrator in a fiduciary capacity. The funds shall be immediately remitted to the pe…

All claims paid by the administrator from funds collected on behalf of the insurer shall be paid only on drafts, checks or electronic transfers of and as authorized by the insurer.

(a) With respect to any policies where an administrator adjusts or settles claims, the compensation to the administrator with regard to the policies shall in no way be contingent on claim experience. (b) This section shall not prevent the compensation of an administrator from bei…

(a) Where the services of an administrator are utilized, the administrator shall provide a written notice approved by the insurer, to insured individuals, advising them of the identity of and relationship among the administrator, the policyholder and the insurer. (b) Where an adm…

(a) No person shall act as, or hold out to be, an administrator in this state, other than an adjuster licensed in this state for the kinds of business for which the person is acting as an adjuster, unless the person holds a license as an administrator issued by the commissioner. …

(1) The commissioner may waive the requirements of § 56-6-410 for any person or class of persons. The factors taken into account in granting the waiver shall include, but not be limited to:(1) Whether the person acting as an administrator is primarily in a business other than tha…

This part shall not be applicable to those trusts regulated by the federal government.

This part is known and may be cited as the “Managing General Agents Act.”

(1) As used in this part, unless the context otherwise requires:(1) “Actuary” means a person who is a member in good standing of the American Academy of Actuaries;(2) “Insurer” means any person, firm, association or corporation duly licensed in this state as an insurance company …

(a) No person shall act in the capacity of an MGA, with respect to risks located in this state for an insurer licensed in this state, unless the person is a licensed insurance agent in this state. (b) No person shall act in the capacity of an MGA representing an insurer domiciled…

(1) No person, firm, association or corporation acting in the capacity of an MGA shall place business with an insurer unless there is in force a written contract between the parties that sets forth the responsibilities of each party and where both parties share responsibility for…

(a) The insurer shall have on file an independent financial examination, in a form acceptable to the commissioner, of each MGA with which it has done business. (b) If an MGA establishes loss reserves, the insurer shall annually obtain the opinion of an actuary attesting to the ad…

The acts of the MGA are considered to be the acts of the insurer on whose behalf it is acting. An MGA may be examined as if it were the insurer.

(a) If the commissioner finds, after a hearing conducted in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, that any person has violated this part, the commissioner may order:(1) For each separate violation, a penalty in an amount of fiv…

The commissioner is authorized to promulgate rules and regulations to effectuate the purposes of this part. The rules and regulations shall be promulgated in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5.

The commissioner may waive the application of this chapter to a particular person or arrangement if the application of this chapter is not necessary to carry out the purposes of this chapter.

No insurer may continue to utilize the services of an MGA on and after July 1, 1991, unless the utilization is in compliance with this part.

This part is known and may be cited as the “Business Transacted with Producer Controlled Property/Casualty Insurer Act.”

(1) As used in this part, unless the context otherwise requires:(1) “Control” or “controlled” means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a person, whether through the ownership of voting securities, by…

(1) No producer that has control of a licensed property/casualty insurer may directly or indirectly place business with the insurer in any transaction in which the producer, at the time the business is placed, is acting as such on behalf of the insured for any compensation, commi…

(a) (1) If the commissioner believes that the controlling producer or any other person has not materially complied with this part, or any regulation or order promulgated under this part, after notice and opportunity to be heard, the commissioner may order the controlling producer…

This part is known and may be cited as the “Health Care Service Utilization Review Act.”

(1) The purpose of this part is to:(1) Promote the delivery of quality health care in a cost-effective manner;(2) Assure that utilization review agents adhere to reasonable standards for utilization review, including adherence to the Prior Authorization Fairness Act, compiled in …

(1) As used in this part, unless the context otherwise requires:(1) “Adverse determination” has the same meaning as defined in § 56-61-102;(2) “Clinical criteria” means the written policies, screening procedures, decision rules, decision abstracts, clinical protocols, practice gu…

(a) Utilization review agents shall adhere to the minimum standards set forth in § 56-6-705. Utilization review programs for the mental health and chemical dependency care must comply with the most recent requirements of nationally recognized utilization review accrediting bodies…

(a) All utilization review agents shall meet the following minimum standards:(1) Notification of a determination by the utilization review agent shall be mailed or otherwise communicated to the provider of record or the enrollee or other appropriate individual within two (2) busi…