§ 56-49-113. Disclosure of Insurance Requirement
A creditor shall not impose charges, including premium costs and related interest and finance charges, on a debtor for creditor-placed insurance coverage unless adequate disclosure of the requirement to maintain insurance has been made to the debtor. Adequate disclosure is accomplished if the following occurs: The credit agreement sets forth the requirement that the debtor […]
§ 56-49-114. Investigations — Hearings and Proceedings — Penalties for Violations
The commissioner may conduct investigations or examinations of insurers and agents to ensure compliance with and enforcement of this chapter or any rule, regulation or order under this chapter. The examination or investigation shall be conducted and subject to § 56-1-411 and chapter 8, part 1 of this title. The commissioner may by order, deny, […]
§ 56-49-115. Rules and Regulations
The commissioner is authorized to promulgate rules and regulations to effectuate the purposes of this chapter. All rules and regulations shall be promulgated in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5.
§ 56-49-110. Payment in Event of Loss
In the event of a loss under the creditor-placed insurance policy, the insurer shall pay, at a minimum, the least of the following, the value of which shall be determined as of the date of loss: The cost to repair the collateral less any applicable deductible; The actual cash value of the collateral less any […]
§ 56-49-111. Creditor Right to Require Insurance
In order for the creditor to place insurance on the collateral pledged by the debtor and pass the cost of the insurance on to the debtor: The creditor must have a security interest in the personal property; The credit agreement must require the debtor to maintain insurance on the collateral to protect the creditor’s interest; […]
§ 56-49-112. Premium Remittance — Commissions
The entire amount of the premium due from a creditor shall be remitted to the insurer or its agent in accordance with the insurer’s requirements. No commissions may be paid to, or retained by, a person or entity except a licensed and appointed insurance agent. The retention by the creditor of unearned premiums upon cancellation […]
§ 56-49-101. Short Title — Purpose
This chapter shall be known and may be cited as the “Tennessee Creditor-Placed Insurance Act of 1999.” The purposes of this chapter are to: Promote the public welfare by regulating creditor-placed insurance; Create a legal framework within which creditor-placed insurance may be written in this state; Help maintain the separation between creditors and insurers; and […]
§ 56-49-102. Applicability — Enforcement
This chapter applies to an insurer or agent transacting creditor-placed insurance as defined in this chapter. All creditor-placed insurance written in connection with credit transactions for personal, family or household purposes is subject to this chapter, except: Transactions involving extensions of credit primarily for business or commercial purposes; Insurance on collateralized real property; Insurance offered […]
§ 56-49-103. Chapter Definitions
As used in this chapter, unless the context otherwise requires: “Actual cash value (ACV)” means the cost of replacing damaged or destroyed property with comparable new property, minus depreciation and obsolescence; “Agent” means a person who receives a commission for insurance placed or written or who, on behalf of an insurer or creditor, solicits, negotiates, […]
§ 56-49-104. Effective Dates of Insurance — Insurance Charges
Creditor-placed insurance shall become effective on the latest of the following dates: The date of the credit transaction; The date prior coverage, including prior creditor-placed insurance coverage, lapsed; One (1) year before the date on which the related insurance charge is made to the debtor’s account; or A later date provided for in the agreement […]