§ 56-55-101. Short Title
This chapter shall be known and may be cited as the “Tennessee Vehicle Protection Product Act.”
§ 56-55-102. Chapter Definitions
As used in this chapter, unless the context otherwise requires: “Administrator” means a third party, other than the warrantor, who is designated by the warrantor to be responsible for the administration of vehicle protection product warranties; “Commissioner” means the commissioner of commerce and insurance; “Incidental costs” means expenses specified in the warranty, incurred by the […]
§ 56-55-103. Prohibited Sales — Restrictions
No vehicle protection product may be sold or offered for sale in this state unless the seller, warrantor, and administrator, if any, comply with this chapter. A vehicle protection product warranty provided or sold in compliance with this chapter is not a contract of insurance. Warranties, indemnity agreements, and guarantees that are not provided as […]
§ 56-55-104. Registration as a Warrantor — Registration Records — Fees — Revocation for Failure to Register
A person may not operate as a warrantor, or represent to the public that the person is a warrantor, unless the person is registered with the department on a form prescribed by the commissioner. Warrantor registration records shall be filed annually and shall be updated by the warrantor within thirty (30) days of any change. […]
§ 56-55-105. Conditions of Required Warranty Insurance Policy by Warrantor
No vehicle protection product shall be sold or offered for sale in this state unless the vehicle protection product warrantor is insured under a warranty insurance policy meeting the following conditions in order to ensure adequate performance under the warranty: The warranty reimbursement insurance policy is issued by an insurer authorized to do business in […]
§ 56-55-106. Conditions on Sale of Warranty Reimbursement Insurance Policies
No warranty reimbursement insurance policy shall be issued, sold, or offered for sale in this state unless the policy meets the following conditions: The policy states that the issuer of the policy will reimburse, or pay on behalf of the vehicle protection product warrantor, all covered sums that the warrantor is legally obligated to pay, […]
§ 56-55-107. Warranty Requirements — Documentation of Sale to Be Furnished Purchaser
Every vehicle protection product warranty shall be written in clear, understandable language and shall be printed or typed in an easy-to-read point size and font and shall not be sold or offered for sale in the state unless the warranty: Contains a disclosure that reads substantially as follows: “This agreement is a product warranty and […]
§ 56-55-108. Cancellation of Sale and Warranty
No vehicle protection product may be sold or offered for sale in this state, unless the vehicle protection product warranty clearly states the terms and conditions governing the cancellation of the sale and warranty, if any. The warrantor may only cancel the warranty if the warranty holder does any of the following: Fails to pay […]
§ 56-55-109. Restrictions on Use of Deceptive Language — False or Misleading Statements — Fraud
Unless licensed as an insurance company, a vehicle protection product warrantor shall not use in its name, contracts, or literature the words “insurance,” “casualty,” “surety,” “mutual,” or any other word that is descriptive of the insurance, casualty, or surety business or that is deceptively similar to the name or description of any insurance or surety […]
§ 56-55-110. Accounts, Books, and Records
All vehicle protection product warrantors shall keep accurate accounts, books, and records concerning transactions regulated under this chapter. A vehicle protection product warrantor’s accounts, books, and records shall include: Copies of all vehicle protection product warranties; The name and address of each warranty holder; and The dates, amounts, and descriptions of all receipts, claims, and […]
§ 56-55-111. Examination of Accounts, Books, and Records for Compliance — Costs and Fees of Examination — Enforcement — Violations — Hearings — Penalties
The commissioner may conduct examinations of warrantors, administrators, or other persons to enforce this chapter, and to protect warranty holders in this state. Upon request of the commissioner, a warrantor shall make available to the commissioner all accounts, books, and records concerning vehicle protection products sold by the warrantor that are necessary to enable the […]
§ 56-55-112. Commissioner or Secretary of State as Attorney for Service of Process
Any warrantor doing business in this state in accordance with this chapter shall be deemed to have appointed the commissioner its true and lawful attorney upon whom may be served all lawful process in any action or proceeding against it. Any warrantor doing business in this state unauthorized by this chapter shall be deemed to […]
§ 56-55-113. Rules and Regulations
The commissioner may adopt administrative rules consistent with this chapter that are necessary to implement this chapter. The rules shall include disclosures for the benefit of the warranty holder, record keeping requirements, registration fees, penalties, and procedures for public complaints. The rules shall also include the conditions under which surplus lines insurers may be rejected […]
§ 56-55-114. Application — Effective Date
This chapter applies to all vehicle protection products sold or offered for sale on or after July 1, 2006. The failure of any person to comply with this chapter prior to July 1, 2006, shall not be admissible in any court proceeding, administrative proceeding, arbitration, or alternative dispute resolution proceeding and may not otherwise be […]
§ 56-55-115. Sale of Warranties Only Authorized as Part of Vehicle Protection Product
Nothing in this chapter shall authorize the sale of warranties, as defined in § 56-55-102, except as part of a vehicle protection product.