Tenn. Code Ann. § 56-7-2605 — TN Code / Title 56 / Chapter 7 / Section 56-7-2605
Equipment, supplies and outpatient services for diabetic patients
Status: in_force

(a) As used in this section: (1) "Health insurance carrier" means a company or other legal entity whose health benefit policies, programs, or contracts are subject to this section; and (2) "Patient with diabetes" means a person with elevated blood glucose levels that has been diagnosed as having diabetes by an appropriately licensed health care professional. (b) Notwithstanding any other law to the contrary, any individual, franchise, blanket, or group health insurance policy, medical service plan, contract, hospital service corporation contract, hospital and medical service corporation contract, fraternal benefit society, health maintenance organization, preferred provider organization or managed care organization that provides hospital, surgical, or medical expense insurance shall provide coverage for equipment, supplies, and outpatient self-management training and education, including medical nutrition counseling, when prescribed by a physician as medically necessary for the treatment of diabetes. (c) This section is applicable to all health benefit policies, programs, or contracts that are offered by commercial insurance companies, nonprofit insurance companies, health maintenance organizations, preferred provider organizations, and managed care organizations, and that are entered into, delivered, issued for delivery, amended, or renewed after January 1, 1998. (d) (1) The following equipment and supplies for the treatment of diabetes must be included in the coverage provided pursuant to subsection (b), when prescribed by a physician as medically necessary for the care of an individual patient with diabetes: (A) Blood glucose monitors and blood glucose monitors for the legally blind; (B) Test strips for blood glucose monitors; (C) Visual reading and urine test strips; (D) Insulin; (E) Injection aids; (F) Syringes; (G) Lancets; (H) Insulin pumps, infusion devices, and appurtenances thereto; (I) Oral hypoglycemic agents; (J) Podiatric appliances for prevention of complications associated with diabetes; and (K) Glucagon emergency kits. (2) When test strips for blood glucose monitors are prescribed by a physician as medically necessary for a noninsulin using patient with diabetes, the coverage required by this part for the test strips for the patient shall be limited, in each calendar year, to twelve (12) bottles of fifty (50) test strips per bottle unless the health insurance carrier approves a larger quantity of test strips based upon a determination by the health insurance carrier that a larger quantity is medically necessary for the patient. (e) (1) To ensure that patients with diabetes are educated as to the proper self-management and treatment of their diabetes, diabetes outpatient self-management training and educational services, including medical nutrition counseling, must be included in the coverage provided pursuant to subsection (b), when prescribed by a physician for the care of an individual patient with diabetes. Diabetes outpatient self-management training and educational services, including medical nutrition counseling, shall be provided by physicians licensed under title 63, chapter 6 or 9, or, upon referral by a physician, by registered nurses or dietitians licensed under title 63, chapter 7 or 25, pharmacists licensed under title 63, chapter 10, who have completed a diabetes patient management program offered by a provider recognized by the American Council on Pharmaceutical Education and the Tennessee board of pharmacy, or other health care professionals licensed in this state who have expertise in diabetes management as determined by the health insurance carrier. The coverage required by subsection (b) for diabetes outpatient self-management training and education shall be limited to the following: (A) Visits that are certified by a physician to be medically necessary upon the diagnosis of diabetes in a patient; (B) Visits that are certified by a physician to be medically necessary because of a significant change in a patient's symptoms or condition that necessitates changes in the patient's self-management; and (C) Visits that are certified by a physician to be medically necessary for re-education or refresher training. (2) Diabetes outpatient self-management training and educational services may be provided in group settings where practicable, and shall include home visits where medically necessary. A health insurance carrier may meet the requirements of this subsection (e) by providing outpatient self-management training and educational services through licensed health care professionals with expertise in diabetes management who are employed by or under contract with the health insurance carrier. (f) The benefits required by this section may be subject to the annual deductible and co-insurance established for all other similar benefits within a given policy, program, or contract of insurance, so long as the annual deductible and co-insurance for the benefits required by this section are no greater than the annual deductible and co-insurance established for all other similar benefits within that policy, program, or contract of insurance. (g) A health insurance carrier shall not reduce or eliminate coverage due to the requirements of this section. (h) Nothing in this section shall apply to accident-only, specified disease, hospital indemnity, medicare supplement, long-term care or other limited benefit health insurance policies. Acts 1997, ch. 332, §§ 1, 2.
(a) As used in this section: (1) "Health insurance carrier" means a company or other legal entity whose health benefit policies, programs, or contracts are subject to this section; and (2) "Patient with diabetes" means a person with elevated blood glucose levels that has been diagnosed as having diabetes by an appropriately licensed health care professional.
(1) "Health insurance carrier" means a company or other legal entity whose health benefit policies, programs, or contracts are subject to this section; and
(2) "Patient with diabetes" means a person with elevated blood glucose levels that has been diagnosed as having diabetes by an appropriately licensed health care professional.
(b) Notwithstanding any other law to the contrary, any individual, franchise, blanket, or group health insurance policy, medical service plan, contract, hospital service corporation contract, hospital and medical service corporation contract, fraternal benefit society, health maintenance organization, preferred provider organization or managed care organization that provides hospital, surgical, or medical expense insurance shall provide coverage for equipment, supplies, and outpatient self-management training and education, including medical nutrition counseling, when prescribed by a physician as medically necessary for the treatment of diabetes.
(c) This section is applicable to all health benefit policies, programs, or contracts that are offered by commercial insurance companies, nonprofit insurance companies, health maintenance organizations, preferred provider organizations, and managed care organizations, and that are entered into, delivered, issued for delivery, amended, or renewed after January 1, 1998.
(d) (1) The following equipment and supplies for the treatment of diabetes must be included in the coverage provided pursuant to subsection (b), when prescribed by a physician as medically necessary for the care of an individual patient with diabetes: (A) Blood glucose monitors and blood glucose monitors for the legally blind; (B) Test strips for blood glucose monitors; (C) Visual reading and urine test strips; (D) Insulin; (E) Injection aids; (F) Syringes; (G) Lancets; (H) Insulin pumps, infusion devices, and appurtenances thereto; (I) Oral hypoglycemic agents; (J) Podiatric appliances for prevention of complications associated with diabetes; and (K) Glucagon emergency kits. (2) When test strips for blood glucose monitors are prescribed by a physician as medically necessary for a noninsulin using patient with diabetes, the coverage required by this part for the test strips for the patient shall be limited, in each calendar year, to twelve (12) bottles of fifty (50) test strips per bottle unless the health insurance carrier approves a larger quantity of test strips based upon a determination by the health insurance carrier that a larger quantity is medically necessary for the patient.
(1) The following equipment and supplies for the treatment of diabetes must be included in the coverage provided pursuant to subsection (b), when prescribed by a physician as medically necessary for the care of an individual patient with diabetes: (A) Blood glucose monitors and blood glucose monitors for the legally blind; (B) Test strips for blood glucose monitors; (C) Visual reading and urine test strips; (D) Insulin; (E) Injection aids; (F) Syringes; (G) Lancets; (H) Insulin pumps, infusion devices, and appurtenances thereto; (I) Oral hypoglycemic agents; (J) Podiatric appliances for prevention of complications associated with diabetes; and (K) Glucagon emergency kits.
(A) Blood glucose monitors and blood glucose monitors for the legally blind;
(B) Test strips for blood glucose monitors;
(C) Visual reading and urine test strips;
(D) Insulin;
(E) Injection aids;
(F) Syringes;
(G) Lancets;
(H) Insulin pumps, infusion devices, and appurtenances thereto;
(I) Oral hypoglycemic agents;
(J) Podiatric appliances for prevention of complications associated with diabetes; and
(K) Glucagon emergency kits.
(2) When test strips for blood glucose monitors are prescribed by a physician as medically necessary for a noninsulin using patient with diabetes, the coverage required by this part for the test strips for the patient shall be limited, in each calendar year, to twelve (12) bottles of fifty (50) test strips per bottle unless the health insurance carrier approves a larger quantity of test strips based upon a determination by the health insurance carrier that a larger quantity is medically necessary for the patient.
(e) (1) To ensure that patients with diabetes are educated as to the proper self-management and treatment of their diabetes, diabetes outpatient self-management training and educational services, including medical nutrition counseling, must be included in the coverage provided pursuant to subsection (b), when prescribed by a physician for the care of an individual patient with diabetes. Diabetes outpatient self-management training and educational services, including medical nutrition counseling, shall be provided by physicians licensed under title 63, chapter 6 or 9, or, upon referral by a physician, by registered nurses or dietitians licensed under title 63, chapter 7 or 25, pharmacists licensed under title 63, chapter 10, who have completed a diabetes patient management program offered by a provider recognized by the American Council on Pharmaceutical Education and the Tennessee board of pharmacy, or other health care professionals licensed in this state who have expertise in diabetes management as determined by the health insurance carrier. The coverage required by subsection (b) for diabetes outpatient self-management training and education shall be limited to the following: (A) Visits that are certified by a physician to be medically necessary upon the diagnosis of diabetes in a patient; (B) Visits that are certified by a physician to be medically necessary because of a significant change in a patient's symptoms or condition that necessitates changes in the patient's self-management; and (C) Visits that are certified by a physician to be medically necessary for re-education or refresher training. (2) Diabetes outpatient self-management training and educational services may be provided in group settings where practicable, and shall include home visits where medically necessary. A health insurance carrier may meet the requirements of this subsection (e) by providing outpatient self-management training and educational services through licensed health care professionals with expertise in diabetes management who are employed by or under contract with the health insurance carrier.
(1) To ensure that patients with diabetes are educated as to the proper self-management and treatment of their diabetes, diabetes outpatient self-management training and educational services, including medical nutrition counseling, must be included in the coverage provided pursuant to subsection (b), when prescribed by a physician for the care of an individual patient with diabetes. Diabetes outpatient self-management training and educational services, including medical nutrition counseling, shall be provided by physicians licensed under title 63, chapter 6 or 9, or, upon referral by a physician, by registered nurses or dietitians licensed under title 63, chapter 7 or 25, pharmacists licensed under title 63, chapter 10, who have completed a diabetes patient management program offered by a provider recognized by the American Council on Pharmaceutical Education and the Tennessee board of pharmacy, or other health care professionals licensed in this state who have expertise in diabetes management as determined by the health insurance carrier. The coverage required by subsection (b) for diabetes outpatient self-management training and education shall be limited to the following: (A) Visits that are certified by a physician to be medically necessary upon the diagnosis of diabetes in a patient; (B) Visits that are certified by a physician to be medically necessary because of a significant change in a patient's symptoms or condition that necessitates changes in the patient's self-management; and (C) Visits that are certified by a physician to be medically necessary for re-education or refresher training.
(A) Visits that are certified by a physician to be medically necessary upon the diagnosis of diabetes in a patient;
(B) Visits that are certified by a physician to be medically necessary because of a significant change in a patient's symptoms or condition that necessitates changes in the patient's self-management; and
(C) Visits that are certified by a physician to be medically necessary for re-education or refresher training.
(2) Diabetes outpatient self-management training and educational services may be provided in group settings where practicable, and shall include home visits where medically necessary. A health insurance carrier may meet the requirements of this subsection (e) by providing outpatient self-management training and educational services through licensed health care professionals with expertise in diabetes management who are employed by or under contract with the health insurance carrier.
(f) The benefits required by this section may be subject to the annual deductible and co-insurance established for all other similar benefits within a given policy, program, or contract of insurance, so long as the annual deductible and co-insurance for the benefits required by this section are no greater than the annual deductible and co-insurance established for all other similar benefits within that policy, program, or contract of insurance.
(g) A health insurance carrier shall not reduce or eliminate coverage due to the requirements of this section.
(h) Nothing in this section shall apply to accident-only, specified disease, hospital indemnity, medicare supplement, long-term care or other limited benefit health insurance policies.
Acts 1997, ch. 332, §§ 1, 2.
Tenn. Code Ann. § 56-50-113 — TN Code / Title 56 / Chapter 50 / Section 56-50-113
Advertising for viatical settlements and viatical settlement purchase agreements
Status: in_force

(a) This section shall apply to any advertising of viatical settlement contracts, viatical settlement purchase agreements or related products or services intended for dissemination in this state, including Internet advertising viewed by persons located in this state. Where disclosure requirements are established pursuant to federal regulation, this section shall be interpreted so as to minimize or eliminate conflict with federal regulation wherever possible. (b) Every viatical settlement licensee shall establish and at all times maintain a system of control over the content, form and method of dissemination of all advertisements of its contracts, products and services. All advertisements, regardless of by whom written, created, designed or presented, shall be the responsibility of the viatical settlement licensees, as well as the individual who created or presented the advertisement. A system of control shall include regular routine notification, at least once a year, to agents and others authorized by the viatical settlement licensee that disseminate advertisements of the requirements and procedures for approval prior to the use of any advertisements not furnished by the viatical settlement licensee. (c) Advertisements shall be truthful and not misleading in fact or by implication. The form and content of an advertisement of a viatical settlement contract or viatical settlement purchase agreement, product or service shall be sufficiently complete and clear so as to avoid deception. It shall not have the capacity or tendency to mislead or deceive. Whether an advertisement has the capacity or tendency to mislead or deceive shall be determined by the commissioner from the overall impression that the advertisement may be reasonably expected to create upon a person of average education or intelligence within the segment of the public to which it is directed. (d) Certain viatical settlement advertisements are deemed false and misleading on their face and are prohibited. False and misleading viatical settlement advertisements include, but are not limited to, the following representations: (1) "Guaranteed", "fully secured", "100 percent secured", "fully insured", "secure", "safe", "backed by rated insurance companies", "backed by federal law", "backed by state law", or "state guaranty funds" or similar representations; (2) "No risk", "minimal risk", "low risk", "no speculation", "no fluctuation" or similar representations; (3) "Qualified or approved for individual retirement accounts (IRAs), Roth IRAs, 401(k) plans, simplified employee pensions (SEP), 403(b), Keogh plans, tax sheltered annuity TSA, other retirement account rollovers", "tax deferred" or similar representations; (4) Utilization of the word "guaranteed" to describe the fixed return, annual return, principal, earnings, profits, investment or similar representations; (5) "No sales charges or fees" or similar representations; (6) "High yield", "superior return", "excellent return", "high return", "quick profit" or similar representations; and (7) Purported favorable representations or testimonials about the benefits of viatical settlement contracts or viatical settlement purchase agreements as an investment, taken out of context from newspapers, trade papers, journals, radio and television programs and all other forms of print and electronic media. (e) The information required to be disclosed under this chapter shall not be minimized, rendered obscure or presented in an ambiguous fashion or intermingled with the text of the advertisement so as to be confusing or misleading. (1) An advertisement shall not omit material information or use words, phrases, statements, references or illustrations if the omission or use has the capacity, tendency or effect of misleading or deceiving viators, purchasers or prospective purchasers as to the nature or extent of any benefit, loss covered, premium payable or state or federal tax consequence. The fact that the viatical settlement contract or viatical settlement purchase agreement offered is made available for inspection prior to consummation of the sale, or an offer is made to refund the payment if the viator is not satisfied or that the viatical settlement contract or viatical settlement purchase agreement includes a "free look" period that satisfies or exceeds legal requirements, does not remedy misleading statements. (2) An advertisement shall not use the name or title of a life insurance company or a life insurance policy unless the advertisement has been approved by the insurer. (3) An advertisement shall not represent that premium payments will not be required to be paid on the life insurance policy that is the subject of a viatical settlement contract or viatical settlement purchase agreement in order to maintain that policy, unless that is the fact. (4) An advertisement shall not state or imply that interest charged on an accelerated death benefit or a policy loan is unfair, inequitable or in any manner an incorrect or improper practice. (5) The words "free", "no cost", "without cost", "no additional cost", "at no extra cost" or words of similar import shall not be used with respect to any benefit or service unless true. An advertisement may specify the charge for a benefit or a service or may state that a charge is included in the payment or use other appropriate language. (6) (A) Testimonials, appraisals or analysis used in advertisements must: (i) Be genuine; (ii) Represent the current opinion of the author; (iii) Be applicable to the viatical settlement contract or viatical settlement purchase agreement, product or service advertised, if any; and (iv) Be accurately reproduced with sufficient completeness to avoid misleading or deceiving prospective viators or purchasers as to the nature or scope of the testimonials, appraisal, analysis or endorsement. (B) In using testimonials, appraisals or analysis, a licensee under this chapter makes as its own all the statements contained therein, and the statements are subject to this section. (C) If the individual making a testimonial, appraisal, analysis or an endorsement has a financial interest in the party making use of the testimonial, appraisal, analysis or endorsement, either directly or through a related entity as a stockholder, director, officer, employee or otherwise, or receives any benefit directly or indirectly other than required union scale wages, that fact shall be prominently disclosed in the advertisement. (D) An advertisement shall not state or imply that a viatical settlement contract or viatical settlement purchase agreement, benefit or service has been approved or endorsed by a group of individuals, society, association or other organization unless that is the fact and unless any relationship between an organization and the viatical settlement licensee is disclosed. If the entity making the endorsement or testimonial is owned, controlled or managed by the viatical settlement licensee, or receives any payment or other consideration from the viatical settlement licensee for making an endorsement or testimonial, that fact shall be disclosed in the advertisement. (E) When an endorsement refers to benefits received under a viatical settlement contract or viatical settlement purchase agreement, all pertinent information shall be retained for a period of five (5) years after its use. (f) An advertisement shall not contain statistical information unless it accurately reflects recent and relevant facts. The source of all statistics used in an advertisement shall be identified. (g) An advertisement shall not disparage insurers, viatical settlement providers, viatical settlement brokers, viatical settlement investment agents, insurance producers, policies, services or methods of marketing. (h) The name of the viatical settlement licensee shall be clearly identified in all advertisements about the licensee or its viatical settlement contract or viatical settlement purchase agreements, products or services, and if any specific viatical settlement contract or viatical settlement purchase agreement is advertised, the viatical settlement contract or viatical settlement purchase agreement shall be identified either by form number or some other appropriate description. If an application is part of the advertisement, the name of the viatical settlement provider shall be shown on the application. (i) An advertisement shall not use a trade name, group designation, name of the parent company of a viatical settlement licensee, name of a particular division of the viatical settlement licensee, service mark, slogan, symbol or other device or reference without disclosing the name of the viatical settlement licensee, if the advertisement would have the capacity or tendency to mislead or deceive as to the true identity of the viatical settlement licensee or to create the impression that a company other than the viatical settlement licensee would have any responsibility for the financial obligation under a viatical settlement contract or viatical settlement purchase agreement. (j) An advertisement shall not use any combination of words, symbols or physical materials that by their content, phraseology, shape, color or other characteristics are so similar to a combination of words, symbols or physical materials used by a government program or agency or otherwise appear to be of such a nature that they tend to mislead prospective viators or purchasers into believing that the solicitation is in some manner connected with a government program or agency. (k) An advertisement may state that a viatical settlement licensee is licensed in the state where the advertisement appears; provided, that it does not exaggerate that fact or suggest or imply that a competing viatical settlement licensee may not be so licensed. The advertisement may ask the audience to consult the licensee's web site or contact the department of insurance to find out if the state requires licensing and, if so, whether the viatical settlement provider, viatical settlement broker or viatical settlement investment agent is licensed. (l) An advertisement shall not create the impression that the viatical settlement provider, its financial condition or status, the payment of its claims or the merits, desirability or advisability of its viatical settlement contracts or viatical settlement purchase agreement forms are recommended or endorsed by any government entity. (m) The name of the actual licensee shall be stated in all of its advertisements. An advertisement shall not use a trade name, any group designation, name of any affiliate or controlling entity of the licensee, service mark, slogan, symbol or other device in a manner that would have the capacity or tendency to mislead or deceive as to the true identity of the actual licensee or create the false impression that an affiliate or controlling entity would have any responsibility for the financial obligation of the licensee. (n) An advertisement shall not directly or indirectly create the impression that any division or agency of the state or of the United States government endorses, approves or favors: (1) Any viatical settlement licensee or its business practices or methods of operation; (2) The merits, desirability or advisability of any viatical settlement contract or viatical settlement purchase agreement; (3) Any viatical settlement contract or viatical settlement purchase agreement; or (4) Any life insurance policy or life insurance company. (o) If the advertiser emphasizes the speed with which the viatication will occur, the advertising must disclose the average time frame from completed application to the date of offer and from acceptance of the offer to receipt of the funds by the viator. (p) If the advertising emphasizes the dollar amounts available to viators, the advertising shall disclose the average purchase price as a percent of face value obtained by viators contracting with the licensee during the past six (6) months. Acts 2009, ch. 604, § 14.
(a) This section shall apply to any advertising of viatical settlement contracts, viatical settlement purchase agreements or related products or services intended for dissemination in this state, including Internet advertising viewed by persons located in this state. Where disclosure requirements are established pursuant to federal regulation, this section shall be interpreted so as to minimize or eliminate conflict with federal regulation wherever possible.
(b) Every viatical settlement licensee shall establish and at all times maintain a system of control over the content, form and method of dissemination of all advertisements of its contracts, products and services. All advertisements, regardless of by whom written, created, designed or presented, shall be the responsibility of the viatical settlement licensees, as well as the individual who created or presented the advertisement. A system of control shall include regular routine notification, at least once a year, to agents and others authorized by the viatical settlement licensee that disseminate advertisements of the requirements and procedures for approval prior to the use of any advertisements not furnished by the viatical settlement licensee.
(c) Advertisements shall be truthful and not misleading in fact or by implication. The form and content of an advertisement of a viatical settlement contract or viatical settlement purchase agreement, product or service shall be sufficiently complete and clear so as to avoid deception. It shall not have the capacity or tendency to mislead or deceive. Whether an advertisement has the capacity or tendency to mislead or deceive shall be determined by the commissioner from the overall impression that the advertisement may be reasonably expected to create upon a person of average education or intelligence within the segment of the public to which it is directed.
(d) Certain viatical settlement advertisements are deemed false and misleading on their face and are prohibited. False and misleading viatical settlement advertisements include, but are not limited to, the following representations: (1) "Guaranteed", "fully secured", "100 percent secured", "fully insured", "secure", "safe", "backed by rated insurance companies", "backed by federal law", "backed by state law", or "state guaranty funds" or similar representations; (2) "No risk", "minimal risk", "low risk", "no speculation", "no fluctuation" or similar representations; (3) "Qualified or approved for individual retirement accounts (IRAs), Roth IRAs, 401(k) plans, simplified employee pensions (SEP), 403(b), Keogh plans, tax sheltered annuity TSA, other retirement account rollovers", "tax deferred" or similar representations; (4) Utilization of the word "guaranteed" to describe the fixed return, annual return, principal, earnings, profits, investment or similar representations; (5) "No sales charges or fees" or similar representations; (6) "High yield", "superior return", "excellent return", "high return", "quick profit" or similar representations; and (7) Purported favorable representations or testimonials about the benefits of viatical settlement contracts or viatical settlement purchase agreements as an investment, taken out of context from newspapers, trade papers, journals, radio and television programs and all other forms of print and electronic media.
(1) "Guaranteed", "fully secured", "100 percent secured", "fully insured", "secure", "safe", "backed by rated insurance companies", "backed by federal law", "backed by state law", or "state guaranty funds" or similar representations;
(2) "No risk", "minimal risk", "low risk", "no speculation", "no fluctuation" or similar representations;
(3) "Qualified or approved for individual retirement accounts (IRAs), Roth IRAs, 401(k) plans, simplified employee pensions (SEP), 403(b), Keogh plans, tax sheltered annuity TSA, other retirement account rollovers", "tax deferred" or similar representations;
(4) Utilization of the word "guaranteed" to describe the fixed return, annual return, principal, earnings, profits, investment or similar representations;
(5) "No sales charges or fees" or similar representations;
(6) "High yield", "superior return", "excellent return", "high return", "quick profit" or similar representations; and
(7) Purported favorable representations or testimonials about the benefits of viatical settlement contracts or viatical settlement purchase agreements as an investment, taken out of context from newspapers, trade papers, journals, radio and television programs and all other forms of print and electronic media.
(e) The information required to be disclosed under this chapter shall not be minimized, rendered obscure or presented in an ambiguous fashion or intermingled with the text of the advertisement so as to be confusing or misleading. (1) An advertisement shall not omit material information or use words, phrases, statements, references or illustrations if the omission or use has the capacity, tendency or effect of misleading or deceiving viators, purchasers or prospective purchasers as to the nature or extent of any benefit, loss covered, premium payable or state or federal tax consequence. The fact that the viatical settlement contract or viatical settlement purchase agreement offered is made available for inspection prior to consummation of the sale, or an offer is made to refund the payment if the viator is not satisfied or that the viatical settlement contract or viatical settlement purchase agreement includes a "free look" period that satisfies or exceeds legal requirements, does not remedy misleading statements. (2) An advertisement shall not use the name or title of a life insurance company or a life insurance policy unless the advertisement has been approved by the insurer. (3) An advertisement shall not represent that premium payments will not be required to be paid on the life insurance policy that is the subject of a viatical settlement contract or viatical settlement purchase agreement in order to maintain that policy, unless that is the fact. (4) An advertisement shall not state or imply that interest charged on an accelerated death benefit or a policy loan is unfair, inequitable or in any manner an incorrect or improper practice. (5) The words "free", "no cost", "without cost", "no additional cost", "at no extra cost" or words of similar import shall not be used with respect to any benefit or service unless true. An advertisement may specify the charge for a benefit or a service or may state that a charge is included in the payment or use other appropriate language. (6) (A) Testimonials, appraisals or analysis used in advertisements must: (i) Be genuine; (ii) Represent the current opinion of the author; (iii) Be applicable to the viatical settlement contract or viatical settlement purchase agreement, product or service advertised, if any; and (iv) Be accurately reproduced with sufficient completeness to avoid misleading or deceiving prospective viators or purchasers as to the nature or scope of the testimonials, appraisal, analysis or endorsement. (B) In using testimonials, appraisals or analysis, a licensee under this chapter makes as its own all the statements contained therein, and the statements are subject to this section. (C) If the individual making a testimonial, appraisal, analysis or an endorsement has a financial interest in the party making use of the testimonial, appraisal, analysis or endorsement, either directly or through a related entity as a stockholder, director, officer, employee or otherwise, or receives any benefit directly or indirectly other than required union scale wages, that fact shall be prominently disclosed in the advertisement. (D) An advertisement shall not state or imply that a viatical settlement contract or viatical settlement purchase agreement, benefit or service has been approved or endorsed by a group of individuals, society, association or other organization unless that is the fact and unless any relationship between an organization and the viatical settlement licensee is disclosed. If the entity making the endorsement or testimonial is owned, controlled or managed by the viatical settlement licensee, or receives any payment or other consideration from the viatical settlement licensee for making an endorsement or testimonial, that fact shall be disclosed in the advertisement. (E) When an endorsement refers to benefits received under a viatical settlement contract or viatical settlement purchase agreement, all pertinent information shall be retained for a period of five (5) years after its use.
(1) An advertisement shall not omit material information or use words, phrases, statements, references or illustrations if the omission or use has the capacity, tendency or effect of misleading or deceiving viators, purchasers or prospective purchasers as to the nature or extent of any benefit, loss covered, premium payable or state or federal tax consequence. The fact that the viatical settlement contract or viatical settlement purchase agreement offered is made available for inspection prior to consummation of the sale, or an offer is made to refund the payment if the viator is not satisfied or that the viatical settlement contract or viatical settlement purchase agreement includes a "free look" period that satisfies or exceeds legal requirements, does not remedy misleading statements.
(2) An advertisement shall not use the name or title of a life insurance company or a life insurance policy unless the advertisement has been approved by the insurer.
(3) An advertisement shall not represent that premium payments will not be required to be paid on the life insurance policy that is the subject of a viatical settlement contract or viatical settlement purchase agreement in order to maintain that policy, unless that is the fact.
(4) An advertisement shall not state or imply that interest charged on an accelerated death benefit or a policy loan is unfair, inequitable or in any manner an incorrect or improper practice.
(5) The words "free", "no cost", "without cost", "no additional cost", "at no extra cost" or words of similar import shall not be used with respect to any benefit or service unless true. An advertisement may specify the charge for a benefit or a service or may state that a charge is included in the payment or use other appropriate language.
(6) (A) Testimonials, appraisals or analysis used in advertisements must: (i) Be genuine; (ii) Represent the current opinion of the author; (iii) Be applicable to the viatical settlement contract or viatical settlement purchase agreement, product or service advertised, if any; and (iv) Be accurately reproduced with sufficient completeness to avoid misleading or deceiving prospective viators or purchasers as to the nature or scope of the testimonials, appraisal, analysis or endorsement. (B) In using testimonials, appraisals or analysis, a licensee under this chapter makes as its own all the statements contained therein, and the statements are subject to this section. (C) If the individual making a testimonial, appraisal, analysis or an endorsement has a financial interest in the party making use of the testimonial, appraisal, analysis or endorsement, either directly or through a related entity as a stockholder, director, officer, employee or otherwise, or receives any benefit directly or indirectly other than required union scale wages, that fact shall be prominently disclosed in the advertisement. (D) An advertisement shall not state or imply that a viatical settlement contract or viatical settlement purchase agreement, benefit or service has been approved or endorsed by a group of individuals, society, association or other organization unless that is the fact and unless any relationship between an organization and the viatical settlement licensee is disclosed. If the entity making the endorsement or testimonial is owned, controlled or managed by the viatical settlement licensee, or receives any payment or other consideration from the viatical settlement licensee for making an endorsement or testimonial, that fact shall be disclosed in the advertisement. (E) When an endorsement refers to benefits received under a viatical settlement contract or viatical settlement purchase agreement, all pertinent information shall be retained for a period of five (5) years after its use.
(A) Testimonials, appraisals or analysis used in advertisements must: (i) Be genuine; (ii) Represent the current opinion of the author; (iii) Be applicable to the viatical settlement contract or viatical settlement purchase agreement, product or service advertised, if any; and (iv) Be accurately reproduced with sufficient completeness to avoid misleading or deceiving prospective viators or purchasers as to the nature or scope of the testimonials, appraisal, analysis or endorsement.
(i) Be genuine;
(ii) Represent the current opinion of the author;
(iii) Be applicable to the viatical settlement contract or viatical settlement purchase agreement, product or service advertised, if any; and
(iv) Be accurately reproduced with sufficient completeness to avoid misleading or deceiving prospective viators or purchasers as to the nature or scope of the testimonials, appraisal, analysis or endorsement.
(B) In using testimonials, appraisals or analysis, a licensee under this chapter makes as its own all the statements contained therein, and the statements are subject to this section.
(C) If the individual making a testimonial, appraisal, analysis or an endorsement has a financial interest in the party making use of the testimonial, appraisal, analysis or endorsement, either directly or through a related entity as a stockholder, director, officer, employee or otherwise, or receives any benefit directly or indirectly other than required union scale wages, that fact shall be prominently disclosed in the advertisement.
(D) An advertisement shall not state or imply that a viatical settlement contract or viatical settlement purchase agreement, benefit or service has been approved or endorsed by a group of individuals, society, association or other organization unless that is the fact and unless any relationship between an organization and the viatical settlement licensee is disclosed. If the entity making the endorsement or testimonial is owned, controlled or managed by the viatical settlement licensee, or receives any payment or other consideration from the viatical settlement licensee for making an endorsement or testimonial, that fact shall be disclosed in the advertisement.
(E) When an endorsement refers to benefits received under a viatical settlement contract or viatical settlement purchase agreement, all pertinent information shall be retained for a period of five (5) years after its use.
(f) An advertisement shall not contain statistical information unless it accurately reflects recent and relevant facts. The source of all statistics used in an advertisement shall be identified.
(g) An advertisement shall not disparage insurers, viatical settlement providers, viatical settlement brokers, viatical settlement investment agents, insurance producers, policies, services or methods of marketing.
(h) The name of the viatical settlement licensee shall be clearly identified in all advertisements about the licensee or its viatical settlement contract or viatical settlement purchase agreements, products or services, and if any specific viatical settlement contract or viatical settlement purchase agreement is advertised, the viatical settlement contract or viatical settlement purchase agreement shall be identified either by form number or some other appropriate description. If an application is part of the advertisement, the name of the viatical settlement provider shall be shown on the application.
(i) An advertisement shall not use a trade name, group designation, name of the parent company of a viatical settlement licensee, name of a particular division of the viatical settlement licensee, service mark, slogan, symbol or other device or reference without disclosing the name of the viatical settlement licensee, if the advertisement would have the capacity or tendency to mislead or deceive as to the true identity of the viatical settlement licensee or to create the impression that a company other than the viatical settlement licensee would have any responsibility for the financial obligation under a viatical settlement contract or viatical settlement purchase agreement.
(j) An advertisement shall not use any combination of words, symbols or physical materials that by their content, phraseology, shape, color or other characteristics are so similar to a combination of words, symbols or physical materials used by a government program or agency or otherwise appear to be of such a nature that they tend to mislead prospective viators or purchasers into believing that the solicitation is in some manner connected with a government program or agency.
(k) An advertisement may state that a viatical settlement licensee is licensed in the state where the advertisement appears; provided, that it does not exaggerate that fact or suggest or imply that a competing viatical settlement licensee may not be so licensed. The advertisement may ask the audience to consult the licensee's web site or contact the department of insurance to find out if the state requires licensing and, if so, whether the viatical settlement provider, viatical settlement broker or viatical settlement investment agent is licensed.
(l) An advertisement shall not create the impression that the viatical settlement provider, its financial condition or status, the payment of its claims or the merits, desirability or advisability of its viatical settlement contracts or viatical settlement purchase agreement forms are recommended or endorsed by any government entity.
(m) The name of the actual licensee shall be stated in all of its advertisements. An advertisement shall not use a trade name, any group designation, name of any affiliate or controlling entity of the licensee, service mark, slogan, symbol or other device in a manner that would have the capacity or tendency to mislead or deceive as to the true identity of the actual licensee or create the false impression that an affiliate or controlling entity would have any responsibility for the financial obligation of the licensee.
(n) An advertisement shall not directly or indirectly create the impression that any division or agency of the state or of the United States government endorses, approves or favors: (1) Any viatical settlement licensee or its business practices or methods of operation; (2) The merits, desirability or advisability of any viatical settlement contract or viatical settlement purchase agreement; (3) Any viatical settlement contract or viatical settlement purchase agreement; or (4) Any life insurance policy or life insurance company.
(1) Any viatical settlement licensee or its business practices or methods of operation;
(2) The merits, desirability or advisability of any viatical settlement contract or viatical settlement purchase agreement;
(3) Any viatical settlement contract or viatical settlement purchase agreement; or
(4) Any life insurance policy or life insurance company.
(o) If the advertiser emphasizes the speed with which the viatication will occur, the advertising must disclose the average time frame from completed application to the date of offer and from acceptance of the offer to receipt of the funds by the viator.
(p) If the advertising emphasizes the dollar amounts available to viators, the advertising shall disclose the average purchase price as a percent of face value obtained by viators contracting with the licensee during the past six (6) months.
Acts 2009, ch. 604, § 14.
Tenn. Code Ann. § 56-8-202 — TN Code / Title 56 / Chapter 8 / Section 56-8-202
Part definitions
Status: in_force

As used in this part, unless the context otherwise requires: (1) "Abuse" means the occurrence of one (1) or more of the following acts: (A) Attempting to cause or intentionally, knowingly or recklessly causing another person, including a minor child, bodily injury, physical harm, severe emotional distress, psychological trauma, rape, sexual assault or involuntary sexual intercourse; (B) Knowingly engaging in a course of conduct or repeatedly committing acts toward another person, including a minor child, including following the person or minor child without proper authority, under circumstances that place the person or minor child in reasonable fear of bodily injury or physical harm; (C) Subjecting another person, including a minor child, to false imprisonment; or (D) Attempting to cause or intentionally, knowingly, or recklessly causing damage to property so as to intimidate or attempt to control the behavior of another person, including a minor child; (2) "Abuse-related medical condition" means a medical condition sustained by a subject of abuse that arises in whole or part out of an act or pattern of abuse; (3) "Abuse status" means the fact or perception that a person is, has been, or may be a subject of abuse, regardless of whether the person has sustained abuse-related medical conditions or has incurred abuse-related claims; (4) "Health benefit plan" or "plan" means a policy, contract, certificate or agreement offered by a carrier to provide, deliver, arrange for, pay for or reimburse any of the costs of health care services. "Health benefit plan" includes accident only, credit health, dental, vision, medicare supplement, or long-term care coverage issued as a supplement to liability insurance, automobile medical payment insurance, short-term and catastrophic health insurance policies, and a policy that pays on a cost-incurred basis. "Health benefit plan" does not include workers' compensation or similar insurance; (5) "Health carrier" means an entity subject to the insurance laws and regulations of this state, or subject to the jurisdiction of the commissioner, that contracts or offers to contract to provide, deliver, arrange for, pay for or reimburse any of the cost of health care services, including a sickness and accident insurance company, a health maintenance organization, a nonprofit hospital and health service corporation, or any other entity providing a plan of health insurance, health benefits or health services; (6) "Insured" means a party named on a policy, certificate or health benefit plan as the person with legal rights to the benefits provided by the policy, certificate or health benefit plan. For group insurance, "insured" includes a person who is a beneficiary covered by a group policy, certificate, or health benefit plan; (7) "Policy" means a contract of insurance, certificate, indemnity, suretyship, or annuity issued, proposed for issuance, or intended for issuance by an insurer, including endorsements or riders to an insurance policy or contract; (8) "Subject of abuse" means a person to whom a family member, or a current or former household member, intimate partner, or caretaker, or a perpetrator of sexual assault, a stalker or a sex offender has directed an act as defined in subdivision (1); who has current or prior injuries, illnesses or disorders that resulted from abuse; or who seeks, may have sought or had reason to seek medical or psychological treatment for abuse, or protection, court-ordered protection or shelter from abuse; and (9) "Underwrite" means to properly classify individuals who request insurance coverage and includes, but is not limited to, the acts of refusal to insure, refusal to continue to insure, limiting the amount, extent or kind of coverage, or charging a different rate for coverage. Acts 1996, ch. 723, § 1.
As used in this part, unless the context otherwise requires:
(1) "Abuse" means the occurrence of one (1) or more of the following acts: (A) Attempting to cause or intentionally, knowingly or recklessly causing another person, including a minor child, bodily injury, physical harm, severe emotional distress, psychological trauma, rape, sexual assault or involuntary sexual intercourse; (B) Knowingly engaging in a course of conduct or repeatedly committing acts toward another person, including a minor child, including following the person or minor child without proper authority, under circumstances that place the person or minor child in reasonable fear of bodily injury or physical harm; (C) Subjecting another person, including a minor child, to false imprisonment; or (D) Attempting to cause or intentionally, knowingly, or recklessly causing damage to property so as to intimidate or attempt to control the behavior of another person, including a minor child;
(A) Attempting to cause or intentionally, knowingly or recklessly causing another person, including a minor child, bodily injury, physical harm, severe emotional distress, psychological trauma, rape, sexual assault or involuntary sexual intercourse;
(B) Knowingly engaging in a course of conduct or repeatedly committing acts toward another person, including a minor child, including following the person or minor child without proper authority, under circumstances that place the person or minor child in reasonable fear of bodily injury or physical harm;
(C) Subjecting another person, including a minor child, to false imprisonment; or
(D) Attempting to cause or intentionally, knowingly, or recklessly causing damage to property so as to intimidate or attempt to control the behavior of another person, including a minor child;
(2) "Abuse-related medical condition" means a medical condition sustained by a subject of abuse that arises in whole or part out of an act or pattern of abuse;
(3) "Abuse status" means the fact or perception that a person is, has been, or may be a subject of abuse, regardless of whether the person has sustained abuse-related medical conditions or has incurred abuse-related claims;
(4) "Health benefit plan" or "plan" means a policy, contract, certificate or agreement offered by a carrier to provide, deliver, arrange for, pay for or reimburse any of the costs of health care services. "Health benefit plan" includes accident only, credit health, dental, vision, medicare supplement, or long-term care coverage issued as a supplement to liability insurance, automobile medical payment insurance, short-term and catastrophic health insurance policies, and a policy that pays on a cost-incurred basis. "Health benefit plan" does not include workers' compensation or similar insurance;
(5) "Health carrier" means an entity subject to the insurance laws and regulations of this state, or subject to the jurisdiction of the commissioner, that contracts or offers to contract to provide, deliver, arrange for, pay for or reimburse any of the cost of health care services, including a sickness and accident insurance company, a health maintenance organization, a nonprofit hospital and health service corporation, or any other entity providing a plan of health insurance, health benefits or health services;
(6) "Insured" means a party named on a policy, certificate or health benefit plan as the person with legal rights to the benefits provided by the policy, certificate or health benefit plan. For group insurance, "insured" includes a person who is a beneficiary covered by a group policy, certificate, or health benefit plan;
(7) "Policy" means a contract of insurance, certificate, indemnity, suretyship, or annuity issued, proposed for issuance, or intended for issuance by an insurer, including endorsements or riders to an insurance policy or contract;
(8) "Subject of abuse" means a person to whom a family member, or a current or former household member, intimate partner, or caretaker, or a perpetrator of sexual assault, a stalker or a sex offender has directed an act as defined in subdivision (1); who has current or prior injuries, illnesses or disorders that resulted from abuse; or who seeks, may have sought or had reason to seek medical or psychological treatment for abuse, or protection, court-ordered protection or shelter from abuse; and
(9) "Underwrite" means to properly classify individuals who request insurance coverage and includes, but is not limited to, the acts of refusal to insure, refusal to continue to insure, limiting the amount, extent or kind of coverage, or charging a different rate for coverage.
Acts 1996, ch. 723, § 1.
Tenn. Code Ann. § 56-6-402 — TN Code / Title 56 / Chapter 6 / Section 56-6-402
Agreement required - Records - Terms
Status: in_force

(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 (5) years thereafter. The written agreement shall contain provisions that include the requirements of §§ 56-6-404 - 56-6-408, except insofar as those requirements do not apply to the functions performed by the administrator. (b) Where a policy is issued to a trustee or trustees, a copy of the trust agreement and any amendments to the trust agreement shall be furnished to the insurer by the administrator and shall be retained as part of the official records of both the insurer and the administrator for the duration of the policy and five (5) years thereafter. (c) The agreement between administrator and insurer shall make provision with respect to the underwriting or other standards pertaining to the business underwritten by the insurer. Acts 1980, ch. 640, § 2.
(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 (5) years thereafter. The written agreement shall contain provisions that include the requirements of §§ 56-6-404 - 56-6-408, except insofar as those requirements do not apply to the functions performed by the administrator.
(b) Where a policy is issued to a trustee or trustees, a copy of the trust agreement and any amendments to the trust agreement shall be furnished to the insurer by the administrator and shall be retained as part of the official records of both the insurer and the administrator for the duration of the policy and five (5) years thereafter.
(c) The agreement between administrator and insurer shall make provision with respect to the underwriting or other standards pertaining to the business underwritten by the insurer.
Acts 1980, ch. 640, § 2.
Tenn. Code Ann. § 56-22-117 — TN Code / Title 56 / Chapter 22 / Section 56-22-117
Violations - Hearings
Status: in_force

(a) The commissioner may, after notice and a hearing, levy a civil penalty in an amount not to exceed ten thousand dollars ($10,000) against a county mutual insurance company or an entity required to be licensed as a county mutual insurance company, upon a finding that the county mutual insurance company, the entity required to be licensed as a county mutual insurance company, an officer or director of the county mutual insurance company, or the entity required to be licensed as a county mutual insurance company: (1) Has violated this chapter or any rule promulgated under this chapter; (2) Has violated any order issued by the commissioner, including, but not limited to, those orders issued under §§ 56-22-111 , 56-22-115 and 56-22-116 ; (3) Is in a hazardous operating condition; (4) Has made a filing with the commissioner containing fraudulent or materially false or misleading statements of fact; (5) Has failed or refused to pay for the costs of any examination of the county mutual insurance company undertaken under this chapter; (6) Has been convicted of a felony; or (7) Has committed any unfair act or practice as set forth in § 56-8-103 or § 56-8-104 . (b) All hearings conducted pursuant to this section shall be conducted pursuant to the Uniform Administrative Procedures Act, compiled in title 4, chapter 5. (c) Each day of continued violation shall constitute a separate violation for purposes of determining the possible amount of penalty under this section. Acts 2006, ch. 689, §§ 3, 20.
(a) The commissioner may, after notice and a hearing, levy a civil penalty in an amount not to exceed ten thousand dollars ($10,000) against a county mutual insurance company or an entity required to be licensed as a county mutual insurance company, upon a finding that the county mutual insurance company, the entity required to be licensed as a county mutual insurance company, an officer or director of the county mutual insurance company, or the entity required to be licensed as a county mutual insurance company: (1) Has violated this chapter or any rule promulgated under this chapter; (2) Has violated any order issued by the commissioner, including, but not limited to, those orders issued under §§ 56-22-111 , 56-22-115 and 56-22-116 ; (3) Is in a hazardous operating condition; (4) Has made a filing with the commissioner containing fraudulent or materially false or misleading statements of fact; (5) Has failed or refused to pay for the costs of any examination of the county mutual insurance company undertaken under this chapter; (6) Has been convicted of a felony; or (7) Has committed any unfair act or practice as set forth in § 56-8-103 or § 56-8-104 .
(1) Has violated this chapter or any rule promulgated under this chapter;
(2) Has violated any order issued by the commissioner, including, but not limited to, those orders issued under §§ 56-22-111 , 56-22-115 and 56-22-116 ;
(3) Is in a hazardous operating condition;
(4) Has made a filing with the commissioner containing fraudulent or materially false or misleading statements of fact;
(5) Has failed or refused to pay for the costs of any examination of the county mutual insurance company undertaken under this chapter;
(6) Has been convicted of a felony; or
(7) Has committed any unfair act or practice as set forth in § 56-8-103 or § 56-8-104 .
(b) All hearings conducted pursuant to this section shall be conducted pursuant to the Uniform Administrative Procedures Act, compiled in title 4, chapter 5.
(c) Each day of continued violation shall constitute a separate violation for purposes of determining the possible amount of penalty under this section.
Acts 2006, ch. 689, §§ 3, 20.
Tenn. Code Ann. § 56-50-107 — TN Code / Title 56 / Chapter 50 / Section 56-50-107
Examination or investigations
Status: in_force

(a) Authority, Scope and Scheduling of Examinations. (1) (A) The commissioner may conduct an examination under this chapter of a licensee as often as the commissioner, in the commissioner's discretion, deems appropriate after considering the factors set forth in subdivision (a)(1)(B). (B) In scheduling and determining the nature, scope and frequency of the examinations, the commissioner shall consider such matters as the consumer complaints, results of financial statement analyses and ratios, changes in management or ownership, actuarial opinions, reports of independent certified public accountants and other relevant criteria as determined by the commissioner. (2) For purposes of completing an examination of a licensee under this chapter, the commissioner may examine or investigate any person, or the business of any person, in so far as the examination or investigation is, in the sole discretion of the commissioner, necessary or material to the examination of the licensee. (3) In lieu of an examination under this chapter of any foreign or alien licensee licensed in this state, the commissioner may, at the commissioner's discretion, accept an examination report on the licensee as prepared by the commissioner for the licensee's state of domicile or port-of-entry state. (4) As far as practical, the examination of a foreign or alien licensee shall be made in cooperation with the insurance supervisory officials of other states in which the licensee transacts business. (b) Record Retention Requirements. (1) A person required to be licensed by this chapter shall for five (5) years retain copies of all: (A) Proposed, offered or executed contracts, purchase agreements, underwriting documents, policy forms and applications from the date of the proposal, offer or execution of the contract or purchase agreement, whichever is later; (B) All checks, drafts or other evidence and documentation related to the payment, transfer, deposit or release of funds from the date the transaction; and (C) All other records and documents related to the requirements of this chapter. (2) This subsection (b) does not relieve a person of the obligation to produce these documents to the commissioner after the retention period has expired if the person has retained the documents. (3) Records required to be retained by this subsection (b) must be legible and complete and may be retained in paper, photograph, microprocess, magnetic, mechanical or electronic media, or by any process that accurately reproduces or forms a durable medium for the reproduction of a record. (c) Conduct of Examinations. (1) Upon determining that an examination should be conducted, the commissioner shall issue an examination warrant appointing one (1) or more examiners to perform the examination and instructing them as to the scope of the examination. In conducting the examination, the examiner shall observe those guidelines and procedures set forth in the examiners handbook adopted by the National Association of Insurance Commissioners (NAIC). The commissioner may also employ such other guidelines or procedures as the commissioner may deem appropriate. (2) Every licensee or person from whom information is sought, its officers, directors and agents shall provide to the examiners timely, convenient and free access at all reasonable hours at its offices to all books, records, accounts, papers, documents, assets and computer or other recordings relating to the property, assets, business and affairs of the licensee being examined. The officers, directors, employees and agents of the licensee or person shall facilitate the examination and aid in the examination so far as it is in their power to do so. The refusal of a licensee, by its officers, directors, employees or agents, to submit to examination or to comply with any reasonable written request of the commissioner shall be grounds for suspension or refusal of, or nonrenewal of any license or authority held by the licensee to engage in the viatical settlement business or other business subject to the commissioner's jurisdiction. Any proceedings for suspension, revocation or refusal of any license or authority shall be conducted pursuant to § 56-2-305 . (3) The commissioner shall have the power to issue subpoenas, to administer oaths and to examine under oath any person as to any matter pertinent to the examination. Upon the failure or refusal of a person to obey a subpoena, the commissioner may petition a court of competent jurisdiction, and upon proper showing, the court may enter an order compelling the witness to appear and testify or produce documentary evidence. Failure to obey the court order shall be punishable as contempt of court. (4) When making an examination under this chapter, the commissioner may retain attorneys, appraisers, independent actuaries, independent certified public accountants or other professionals and specialists as examiners, the reasonable cost of which shall be borne by the licensee that is the subject of the examination. (5) Nothing contained in this chapter shall be construed to limit the commissioner's authority to terminate or suspend an examination in order to pursue other legal or regulatory action pursuant to the insurance laws of this state. Findings of fact and conclusions made pursuant to any examination shall be prima facie evidence in any legal or regulatory action. (6) Nothing contained in this chapter shall be construed to limit the commissioner's authority to use and, if appropriate, to make public any final or preliminary examination report, any examiner or licensee work papers or other documents, or any other information discovered or developed during the course of any examination in the furtherance of any legal or regulatory action which the commissioner may, in the commissioner's sole discretion, deem appropriate. (d) Examination Reports. (1) Examination reports shall be comprised of only facts appearing upon the books, records or other documents of the licensee, its agents or other persons examined, or as ascertained from the testimony of its officers or agents or other persons examined concerning its affairs, and such conclusions and recommendations as the examiners find reasonably warranted from the facts. (2) No later than sixty (60) days following completion of the examination, the examiner in charge shall file with the commissioner a verified written report of examination under oath. Upon receipt of the verified report, the commissioner shall transmit the report to the licensee examined, together with a notice that shall afford the licensee examined a reasonable opportunity of not more than thirty (30) days to make a written submission or rebuttal with respect to any matters contained in the examination report. (3) In the event the commissioner determines that regulatory action is appropriate as a result of an examination, the commissioner may initiate any proceedings or actions provided by law. (e) Confidentiality of Examination Information. (1) Names and individual identification data for all viators shall be considered private and confidential information and shall not be disclosed by the commissioner, unless specifically required by law. (2) (A) Except as otherwise provided in this chapter, all examination reports, working papers, recorded information, documents and copies thereof produced by, obtained by or disclosed to the commissioner or any other person in the course of an examination made under this chapter, or in the course of analysis or investigation by the commissioner of the financial condition or market conduct of a licensee shall be confidential by law and privileged, shall not be subject to § 10-7-503 , shall not be subject to subpoena and shall not be subject to discovery or admissible in evidence in any private civil action. The commissioner is authorized to use the documents, materials or other information in the furtherance of any regulatory or legal action brought as part of the commissioner's official duties. All examination reports, working papers, recorded information, documents and their copies produced by, obtained by or disclosed to the commissioner or any other person in the course of an examination made under this chapter, or in the course of an analysis or investigation by the commissioner of the financial condition or market conduct of a licensee shall be privileged and confidential in any judicial or administrative proceeding, except for any of the following: (i) An administrative proceeding brought by the commissioner under this chapter; (ii) A judicial review proceeding authorized under this chapter brought by an insurer to whom the records relate; or (iii) An action or proceeding that arises out of the criminal laws of this state or the United States. (B) For the purposes of subdivision (e)(2)(A), "this chapter" includes the law of another state or jurisdiction that is substantially similar to this chapter. (3) Documents, materials or other information, including, but not limited to, all working papers, and copies thereof, in the possession or control of the NAIC and its affiliates and subsidiaries shall be confidential by law and privileged, shall not be subject to subpoena, and shall not be subject to discovery or admissible in evidence in any private civil action if they are: (A) Created, produced or obtained by or disclosed to the NAIC and its affiliates and subsidiaries in the course of assisting an examination made under this chapter, or assisting a commissioner in the analysis or investigation of the financial condition or market conduct of a licensee; or (B) Disclosed to the NAIC and its affiliates and subsidiaries under subdivision (e)(4) by a commissioner. (4) Neither the commissioner nor any person that received the documents, material or other information while acting under the authority of the commissioner, including the NAIC and its affiliates and subsidiaries, shall be permitted to testify in any private civil action concerning any confidential documents, materials or information subject to subdivision (e)(1). (5) In order to assist in the performance of the commissioner's duties, the commissioner: (A) May share documents, materials or other information, including the confidential and privileged documents, materials or information subject to subdivision (e)(1), with other state, federal and international regulatory agencies, with the NAIC and its affiliates and subsidiaries, and with state, federal and international law enforcement authorities; provided, that the recipient agrees to maintain the confidentiality and privileged status of the document, material, communication or other information; (B) May receive documents, materials, communications or information, including otherwise confidential and privileged documents, materials or information, from the NAIC and its affiliates and subsidiaries, and from regulatory and law enforcement officials of other foreign or domestic jurisdictions, and shall maintain as confidential or privileged any document, material or information received with notice or the understanding that it is confidential or privileged under the jurisdiction that is the source of the document, material or information; and (C) May enter into agreements governing sharing and use of information consistent with this subsection (e). (6) No waiver of any applicable privilege or claim of confidentiality in the documents, materials or information shall occur as a result of disclosure to the commissioner under this section or as a result of sharing as authorized in subdivision (e)(5). (7) A privilege established under the law of any state or jurisdiction that is substantially similar to the privilege established under this subsection (e) shall be available and enforced in any proceeding in, and in any court of, this state. (8) Nothing contained in this chapter shall prevent or be construed as prohibiting the commissioner from disclosing the content of an examination report, preliminary examination report or results, or any matter relating thereto, to the commissioner of any other state or country, or to law enforcement officials of this or any other state or agency of the federal government at any time or to the NAIC, so long as such agency or office receiving the report or matters relating thereto agrees in writing to hold it confidential and in a manner consistent with this chapter. (f) Conflict of Interest. (1) An examiner may not be appointed by the commissioner if the examiner, either directly or indirectly, has a conflict of interest or is affiliated with the management of or owns a pecuniary interest in any person subject to examination under this chapter. This subsection (f) shall not be construed to automatically preclude an examiner from being: (A) A viator; (B) An insured in a viaticated insurance policy; or (C) A beneficiary in an insurance policy that is proposed to be viaticated. (2) Notwithstanding the requirements of this subsection (f), the commissioner may retain from time to time, on an individual basis, qualified actuaries, certified public accountants or other similar individuals who are independently practicing their professions, even though these persons may from time to time be similarly employed or retained by persons subject to examination under this chapter. (g) Cost of Examinations. Any licensee or applicant examined under this chapter shall pay the proper charges incurred in such examination, including the expenses of the commissioner or anyone employed or contracted by the commissioner to assist in the examination. (h) Immunity from Liability. (1) No cause of action shall arise nor shall any liability be imposed against the commissioner, the commissioner's authorized representatives or any examiner appointed by the commissioner for any statements made or conduct performed in good faith while carrying out this chapter. (2) No cause of action shall arise, nor shall any liability be imposed against any person for the act of communicating or delivering information or data to the commissioner or the commissioner's authorized representative or examiner pursuant to an examination made under this chapter, if the act of communication or delivery was performed in good faith and without fraudulent intent or the intent to deceive. This subdivision (h)(2) does not abrogate or modify in any way any common law or statutory privilege or immunity heretofore enjoyed by any person identified in subdivision (h)(1). (3) A person identified in subdivision (h)(1) or (h)(2) shall be entitled to an award of attorney's fees and costs if the person is the prevailing party in a civil cause of action for libel, slander or any other relevant tort arising out of activities in carrying out this chapter and the party bringing the action was not substantially justified in doing so. For purposes of this subdivision (h)(3), a proceeding is "substantially justified" if it had a reasonable basis in law or fact at the time that it was initiated. (i) Investigative Authority of the Commissioner. The commissioner may investigate suspected violations of this chapter or fraudulent viatical settlement acts and all persons engaged in the business of viatical settlements. Acts 2009, ch. 604, § 8.
(a) Authority, Scope and Scheduling of Examinations. (1) (A) The commissioner may conduct an examination under this chapter of a licensee as often as the commissioner, in the commissioner's discretion, deems appropriate after considering the factors set forth in subdivision (a)(1)(B). (B) In scheduling and determining the nature, scope and frequency of the examinations, the commissioner shall consider such matters as the consumer complaints, results of financial statement analyses and ratios, changes in management or ownership, actuarial opinions, reports of independent certified public accountants and other relevant criteria as determined by the commissioner. (2) For purposes of completing an examination of a licensee under this chapter, the commissioner may examine or investigate any person, or the business of any person, in so far as the examination or investigation is, in the sole discretion of the commissioner, necessary or material to the examination of the licensee. (3) In lieu of an examination under this chapter of any foreign or alien licensee licensed in this state, the commissioner may, at the commissioner's discretion, accept an examination report on the licensee as prepared by the commissioner for the licensee's state of domicile or port-of-entry state. (4) As far as practical, the examination of a foreign or alien licensee shall be made in cooperation with the insurance supervisory officials of other states in which the licensee transacts business.
(1) (A) The commissioner may conduct an examination under this chapter of a licensee as often as the commissioner, in the commissioner's discretion, deems appropriate after considering the factors set forth in subdivision (a)(1)(B). (B) In scheduling and determining the nature, scope and frequency of the examinations, the commissioner shall consider such matters as the consumer complaints, results of financial statement analyses and ratios, changes in management or ownership, actuarial opinions, reports of independent certified public accountants and other relevant criteria as determined by the commissioner.
(A) The commissioner may conduct an examination under this chapter of a licensee as often as the commissioner, in the commissioner's discretion, deems appropriate after considering the factors set forth in subdivision (a)(1)(B).
(B) In scheduling and determining the nature, scope and frequency of the examinations, the commissioner shall consider such matters as the consumer complaints, results of financial statement analyses and ratios, changes in management or ownership, actuarial opinions, reports of independent certified public accountants and other relevant criteria as determined by the commissioner.
(2) For purposes of completing an examination of a licensee under this chapter, the commissioner may examine or investigate any person, or the business of any person, in so far as the examination or investigation is, in the sole discretion of the commissioner, necessary or material to the examination of the licensee.
(3) In lieu of an examination under this chapter of any foreign or alien licensee licensed in this state, the commissioner may, at the commissioner's discretion, accept an examination report on the licensee as prepared by the commissioner for the licensee's state of domicile or port-of-entry state.
(4) As far as practical, the examination of a foreign or alien licensee shall be made in cooperation with the insurance supervisory officials of other states in which the licensee transacts business.
(b) Record Retention Requirements. (1) A person required to be licensed by this chapter shall for five (5) years retain copies of all: (A) Proposed, offered or executed contracts, purchase agreements, underwriting documents, policy forms and applications from the date of the proposal, offer or execution of the contract or purchase agreement, whichever is later; (B) All checks, drafts or other evidence and documentation related to the payment, transfer, deposit or release of funds from the date the transaction; and (C) All other records and documents related to the requirements of this chapter. (2) This subsection (b) does not relieve a person of the obligation to produce these documents to the commissioner after the retention period has expired if the person has retained the documents. (3) Records required to be retained by this subsection (b) must be legible and complete and may be retained in paper, photograph, microprocess, magnetic, mechanical or electronic media, or by any process that accurately reproduces or forms a durable medium for the reproduction of a record.
(1) A person required to be licensed by this chapter shall for five (5) years retain copies of all: (A) Proposed, offered or executed contracts, purchase agreements, underwriting documents, policy forms and applications from the date of the proposal, offer or execution of the contract or purchase agreement, whichever is later; (B) All checks, drafts or other evidence and documentation related to the payment, transfer, deposit or release of funds from the date the transaction; and (C) All other records and documents related to the requirements of this chapter.
(A) Proposed, offered or executed contracts, purchase agreements, underwriting documents, policy forms and applications from the date of the proposal, offer or execution of the contract or purchase agreement, whichever is later;
(B) All checks, drafts or other evidence and documentation related to the payment, transfer, deposit or release of funds from the date the transaction; and
(C) All other records and documents related to the requirements of this chapter.
(2) This subsection (b) does not relieve a person of the obligation to produce these documents to the commissioner after the retention period has expired if the person has retained the documents.
(3) Records required to be retained by this subsection (b) must be legible and complete and may be retained in paper, photograph, microprocess, magnetic, mechanical or electronic media, or by any process that accurately reproduces or forms a durable medium for the reproduction of a record.
(c) Conduct of Examinations. (1) Upon determining that an examination should be conducted, the commissioner shall issue an examination warrant appointing one (1) or more examiners to perform the examination and instructing them as to the scope of the examination. In conducting the examination, the examiner shall observe those guidelines and procedures set forth in the examiners handbook adopted by the National Association of Insurance Commissioners (NAIC). The commissioner may also employ such other guidelines or procedures as the commissioner may deem appropriate. (2) Every licensee or person from whom information is sought, its officers, directors and agents shall provide to the examiners timely, convenient and free access at all reasonable hours at its offices to all books, records, accounts, papers, documents, assets and computer or other recordings relating to the property, assets, business and affairs of the licensee being examined. The officers, directors, employees and agents of the licensee or person shall facilitate the examination and aid in the examination so far as it is in their power to do so. The refusal of a licensee, by its officers, directors, employees or agents, to submit to examination or to comply with any reasonable written request of the commissioner shall be grounds for suspension or refusal of, or nonrenewal of any license or authority held by the licensee to engage in the viatical settlement business or other business subject to the commissioner's jurisdiction. Any proceedings for suspension, revocation or refusal of any license or authority shall be conducted pursuant to § 56-2-305 . (3) The commissioner shall have the power to issue subpoenas, to administer oaths and to examine under oath any person as to any matter pertinent to the examination. Upon the failure or refusal of a person to obey a subpoena, the commissioner may petition a court of competent jurisdiction, and upon proper showing, the court may enter an order compelling the witness to appear and testify or produce documentary evidence. Failure to obey the court order shall be punishable as contempt of court. (4) When making an examination under this chapter, the commissioner may retain attorneys, appraisers, independent actuaries, independent certified public accountants or other professionals and specialists as examiners, the reasonable cost of which shall be borne by the licensee that is the subject of the examination. (5) Nothing contained in this chapter shall be construed to limit the commissioner's authority to terminate or suspend an examination in order to pursue other legal or regulatory action pursuant to the insurance laws of this state. Findings of fact and conclusions made pursuant to any examination shall be prima facie evidence in any legal or regulatory action. (6) Nothing contained in this chapter shall be construed to limit the commissioner's authority to use and, if appropriate, to make public any final or preliminary examination report, any examiner or licensee work papers or other documents, or any other information discovered or developed during the course of any examination in the furtherance of any legal or regulatory action which the commissioner may, in the commissioner's sole discretion, deem appropriate.
(1) Upon determining that an examination should be conducted, the commissioner shall issue an examination warrant appointing one (1) or more examiners to perform the examination and instructing them as to the scope of the examination. In conducting the examination, the examiner shall observe those guidelines and procedures set forth in the examiners handbook adopted by the National Association of Insurance Commissioners (NAIC). The commissioner may also employ such other guidelines or procedures as the commissioner may deem appropriate.
(2) Every licensee or person from whom information is sought, its officers, directors and agents shall provide to the examiners timely, convenient and free access at all reasonable hours at its offices to all books, records, accounts, papers, documents, assets and computer or other recordings relating to the property, assets, business and affairs of the licensee being examined. The officers, directors, employees and agents of the licensee or person shall facilitate the examination and aid in the examination so far as it is in their power to do so. The refusal of a licensee, by its officers, directors, employees or agents, to submit to examination or to comply with any reasonable written request of the commissioner shall be grounds for suspension or refusal of, or nonrenewal of any license or authority held by the licensee to engage in the viatical settlement business or other business subject to the commissioner's jurisdiction. Any proceedings for suspension, revocation or refusal of any license or authority shall be conducted pursuant to § 56-2-305 .
(3) The commissioner shall have the power to issue subpoenas, to administer oaths and to examine under oath any person as to any matter pertinent to the examination. Upon the failure or refusal of a person to obey a subpoena, the commissioner may petition a court of competent jurisdiction, and upon proper showing, the court may enter an order compelling the witness to appear and testify or produce documentary evidence. Failure to obey the court order shall be punishable as contempt of court.
(4) When making an examination under this chapter, the commissioner may retain attorneys, appraisers, independent actuaries, independent certified public accountants or other professionals and specialists as examiners, the reasonable cost of which shall be borne by the licensee that is the subject of the examination.
(5) Nothing contained in this chapter shall be construed to limit the commissioner's authority to terminate or suspend an examination in order to pursue other legal or regulatory action pursuant to the insurance laws of this state. Findings of fact and conclusions made pursuant to any examination shall be prima facie evidence in any legal or regulatory action.
(6) Nothing contained in this chapter shall be construed to limit the commissioner's authority to use and, if appropriate, to make public any final or preliminary examination report, any examiner or licensee work papers or other documents, or any other information discovered or developed during the course of any examination in the furtherance of any legal or regulatory action which the commissioner may, in the commissioner's sole discretion, deem appropriate.
(d) Examination Reports. (1) Examination reports shall be comprised of only facts appearing upon the books, records or other documents of the licensee, its agents or other persons examined, or as ascertained from the testimony of its officers or agents or other persons examined concerning its affairs, and such conclusions and recommendations as the examiners find reasonably warranted from the facts. (2) No later than sixty (60) days following completion of the examination, the examiner in charge shall file with the commissioner a verified written report of examination under oath. Upon receipt of the verified report, the commissioner shall transmit the report to the licensee examined, together with a notice that shall afford the licensee examined a reasonable opportunity of not more than thirty (30) days to make a written submission or rebuttal with respect to any matters contained in the examination report. (3) In the event the commissioner determines that regulatory action is appropriate as a result of an examination, the commissioner may initiate any proceedings or actions provided by law.
(1) Examination reports shall be comprised of only facts appearing upon the books, records or other documents of the licensee, its agents or other persons examined, or as ascertained from the testimony of its officers or agents or other persons examined concerning its affairs, and such conclusions and recommendations as the examiners find reasonably warranted from the facts.
(2) No later than sixty (60) days following completion of the examination, the examiner in charge shall file with the commissioner a verified written report of examination under oath. Upon receipt of the verified report, the commissioner shall transmit the report to the licensee examined, together with a notice that shall afford the licensee examined a reasonable opportunity of not more than thirty (30) days to make a written submission or rebuttal with respect to any matters contained in the examination report.
(3) In the event the commissioner determines that regulatory action is appropriate as a result of an examination, the commissioner may initiate any proceedings or actions provided by law.
(e) Confidentiality of Examination Information. (1) Names and individual identification data for all viators shall be considered private and confidential information and shall not be disclosed by the commissioner, unless specifically required by law. (2) (A) Except as otherwise provided in this chapter, all examination reports, working papers, recorded information, documents and copies thereof produced by, obtained by or disclosed to the commissioner or any other person in the course of an examination made under this chapter, or in the course of analysis or investigation by the commissioner of the financial condition or market conduct of a licensee shall be confidential by law and privileged, shall not be subject to § 10-7-503 , shall not be subject to subpoena and shall not be subject to discovery or admissible in evidence in any private civil action. The commissioner is authorized to use the documents, materials or other information in the furtherance of any regulatory or legal action brought as part of the commissioner's official duties. All examination reports, working papers, recorded information, documents and their copies produced by, obtained by or disclosed to the commissioner or any other person in the course of an examination made under this chapter, or in the course of an analysis or investigation by the commissioner of the financial condition or market conduct of a licensee shall be privileged and confidential in any judicial or administrative proceeding, except for any of the following: (i) An administrative proceeding brought by the commissioner under this chapter; (ii) A judicial review proceeding authorized under this chapter brought by an insurer to whom the records relate; or (iii) An action or proceeding that arises out of the criminal laws of this state or the United States. (B) For the purposes of subdivision (e)(2)(A), "this chapter" includes the law of another state or jurisdiction that is substantially similar to this chapter. (3) Documents, materials or other information, including, but not limited to, all working papers, and copies thereof, in the possession or control of the NAIC and its affiliates and subsidiaries shall be confidential by law and privileged, shall not be subject to subpoena, and shall not be subject to discovery or admissible in evidence in any private civil action if they are: (A) Created, produced or obtained by or disclosed to the NAIC and its affiliates and subsidiaries in the course of assisting an examination made under this chapter, or assisting a commissioner in the analysis or investigation of the financial condition or market conduct of a licensee; or (B) Disclosed to the NAIC and its affiliates and subsidiaries under subdivision (e)(4) by a commissioner. (4) Neither the commissioner nor any person that received the documents, material or other information while acting under the authority of the commissioner, including the NAIC and its affiliates and subsidiaries, shall be permitted to testify in any private civil action concerning any confidential documents, materials or information subject to subdivision (e)(1). (5) In order to assist in the performance of the commissioner's duties, the commissioner: (A) May share documents, materials or other information, including the confidential and privileged documents, materials or information subject to subdivision (e)(1), with other state, federal and international regulatory agencies, with the NAIC and its affiliates and subsidiaries, and with state, federal and international law enforcement authorities; provided, that the recipient agrees to maintain the confidentiality and privileged status of the document, material, communication or other information; (B) May receive documents, materials, communications or information, including otherwise confidential and privileged documents, materials or information, from the NAIC and its affiliates and subsidiaries, and from regulatory and law enforcement officials of other foreign or domestic jurisdictions, and shall maintain as confidential or privileged any document, material or information received with notice or the understanding that it is confidential or privileged under the jurisdiction that is the source of the document, material or information; and (C) May enter into agreements governing sharing and use of information consistent with this subsection (e). (6) No waiver of any applicable privilege or claim of confidentiality in the documents, materials or information shall occur as a result of disclosure to the commissioner under this section or as a result of sharing as authorized in subdivision (e)(5). (7) A privilege established under the law of any state or jurisdiction that is substantially similar to the privilege established under this subsection (e) shall be available and enforced in any proceeding in, and in any court of, this state. (8) Nothing contained in this chapter shall prevent or be construed as prohibiting the commissioner from disclosing the content of an examination report, preliminary examination report or results, or any matter relating thereto, to the commissioner of any other state or country, or to law enforcement officials of this or any other state or agency of the federal government at any time or to the NAIC, so long as such agency or office receiving the report or matters relating thereto agrees in writing to hold it confidential and in a manner consistent with this chapter.
(1) Names and individual identification data for all viators shall be considered private and confidential information and shall not be disclosed by the commissioner, unless specifically required by law.
(2) (A) Except as otherwise provided in this chapter, all examination reports, working papers, recorded information, documents and copies thereof produced by, obtained by or disclosed to the commissioner or any other person in the course of an examination made under this chapter, or in the course of analysis or investigation by the commissioner of the financial condition or market conduct of a licensee shall be confidential by law and privileged, shall not be subject to § 10-7-503 , shall not be subject to subpoena and shall not be subject to discovery or admissible in evidence in any private civil action. The commissioner is authorized to use the documents, materials or other information in the furtherance of any regulatory or legal action brought as part of the commissioner's official duties. All examination reports, working papers, recorded information, documents and their copies produced by, obtained by or disclosed to the commissioner or any other person in the course of an examination made under this chapter, or in the course of an analysis or investigation by the commissioner of the financial condition or market conduct of a licensee shall be privileged and confidential in any judicial or administrative proceeding, except for any of the following: (i) An administrative proceeding brought by the commissioner under this chapter; (ii) A judicial review proceeding authorized under this chapter brought by an insurer to whom the records relate; or (iii) An action or proceeding that arises out of the criminal laws of this state or the United States. (B) For the purposes of subdivision (e)(2)(A), "this chapter" includes the law of another state or jurisdiction that is substantially similar to this chapter.
(A) Except as otherwise provided in this chapter, all examination reports, working papers, recorded information, documents and copies thereof produced by, obtained by or disclosed to the commissioner or any other person in the course of an examination made under this chapter, or in the course of analysis or investigation by the commissioner of the financial condition or market conduct of a licensee shall be confidential by law and privileged, shall not be subject to § 10-7-503 , shall not be subject to subpoena and shall not be subject to discovery or admissible in evidence in any private civil action. The commissioner is authorized to use the documents, materials or other information in the furtherance of any regulatory or legal action brought as part of the commissioner's official duties. All examination reports, working papers, recorded information, documents and their copies produced by, obtained by or disclosed to the commissioner or any other person in the course of an examination made under this chapter, or in the course of an analysis or investigation by the commissioner of the financial condition or market conduct of a licensee shall be privileged and confidential in any judicial or administrative proceeding, except for any of the following: (i) An administrative proceeding brought by the commissioner under this chapter; (ii) A judicial review proceeding authorized under this chapter brought by an insurer to whom the records relate; or (iii) An action or proceeding that arises out of the criminal laws of this state or the United States.
(i) An administrative proceeding brought by the commissioner under this chapter;
(ii) A judicial review proceeding authorized under this chapter brought by an insurer to whom the records relate; or
(iii) An action or proceeding that arises out of the criminal laws of this state or the United States.
(B) For the purposes of subdivision (e)(2)(A), "this chapter" includes the law of another state or jurisdiction that is substantially similar to this chapter.
(3) Documents, materials or other information, including, but not limited to, all working papers, and copies thereof, in the possession or control of the NAIC and its affiliates and subsidiaries shall be confidential by law and privileged, shall not be subject to subpoena, and shall not be subject to discovery or admissible in evidence in any private civil action if they are: (A) Created, produced or obtained by or disclosed to the NAIC and its affiliates and subsidiaries in the course of assisting an examination made under this chapter, or assisting a commissioner in the analysis or investigation of the financial condition or market conduct of a licensee; or (B) Disclosed to the NAIC and its affiliates and subsidiaries under subdivision (e)(4) by a commissioner.
(A) Created, produced or obtained by or disclosed to the NAIC and its affiliates and subsidiaries in the course of assisting an examination made under this chapter, or assisting a commissioner in the analysis or investigation of the financial condition or market conduct of a licensee; or
(B) Disclosed to the NAIC and its affiliates and subsidiaries under subdivision (e)(4) by a commissioner.
(4) Neither the commissioner nor any person that received the documents, material or other information while acting under the authority of the commissioner, including the NAIC and its affiliates and subsidiaries, shall be permitted to testify in any private civil action concerning any confidential documents, materials or information subject to subdivision (e)(1).
(5) In order to assist in the performance of the commissioner's duties, the commissioner: (A) May share documents, materials or other information, including the confidential and privileged documents, materials or information subject to subdivision (e)(1), with other state, federal and international regulatory agencies, with the NAIC and its affiliates and subsidiaries, and with state, federal and international law enforcement authorities; provided, that the recipient agrees to maintain the confidentiality and privileged status of the document, material, communication or other information; (B) May receive documents, materials, communications or information, including otherwise confidential and privileged documents, materials or information, from the NAIC and its affiliates and subsidiaries, and from regulatory and law enforcement officials of other foreign or domestic jurisdictions, and shall maintain as confidential or privileged any document, material or information received with notice or the understanding that it is confidential or privileged under the jurisdiction that is the source of the document, material or information; and (C) May enter into agreements governing sharing and use of information consistent with this subsection (e).
(A) May share documents, materials or other information, including the confidential and privileged documents, materials or information subject to subdivision (e)(1), with other state, federal and international regulatory agencies, with the NAIC and its affiliates and subsidiaries, and with state, federal and international law enforcement authorities; provided, that the recipient agrees to maintain the confidentiality and privileged status of the document, material, communication or other information;
(B) May receive documents, materials, communications or information, including otherwise confidential and privileged documents, materials or information, from the NAIC and its affiliates and subsidiaries, and from regulatory and law enforcement officials of other foreign or domestic jurisdictions, and shall maintain as confidential or privileged any document, material or information received with notice or the understanding that it is confidential or privileged under the jurisdiction that is the source of the document, material or information; and
(C) May enter into agreements governing sharing and use of information consistent with this subsection (e).
(6) No waiver of any applicable privilege or claim of confidentiality in the documents, materials or information shall occur as a result of disclosure to the commissioner under this section or as a result of sharing as authorized in subdivision (e)(5).
(7) A privilege established under the law of any state or jurisdiction that is substantially similar to the privilege established under this subsection (e) shall be available and enforced in any proceeding in, and in any court of, this state.
(8) Nothing contained in this chapter shall prevent or be construed as prohibiting the commissioner from disclosing the content of an examination report, preliminary examination report or results, or any matter relating thereto, to the commissioner of any other state or country, or to law enforcement officials of this or any other state or agency of the federal government at any time or to the NAIC, so long as such agency or office receiving the report or matters relating thereto agrees in writing to hold it confidential and in a manner consistent with this chapter.
(f) Conflict of Interest. (1) An examiner may not be appointed by the commissioner if the examiner, either directly or indirectly, has a conflict of interest or is affiliated with the management of or owns a pecuniary interest in any person subject to examination under this chapter. This subsection (f) shall not be construed to automatically preclude an examiner from being: (A) A viator; (B) An insured in a viaticated insurance policy; or (C) A beneficiary in an insurance policy that is proposed to be viaticated. (2) Notwithstanding the requirements of this subsection (f), the commissioner may retain from time to time, on an individual basis, qualified actuaries, certified public accountants or other similar individuals who are independently practicing their professions, even though these persons may from time to time be similarly employed or retained by persons subject to examination under this chapter.
(1) An examiner may not be appointed by the commissioner if the examiner, either directly or indirectly, has a conflict of interest or is affiliated with the management of or owns a pecuniary interest in any person subject to examination under this chapter. This subsection (f) shall not be construed to automatically preclude an examiner from being: (A) A viator; (B) An insured in a viaticated insurance policy; or (C) A beneficiary in an insurance policy that is proposed to be viaticated.
(A) A viator;
(B) An insured in a viaticated insurance policy; or
(C) A beneficiary in an insurance policy that is proposed to be viaticated.
(2) Notwithstanding the requirements of this subsection (f), the commissioner may retain from time to time, on an individual basis, qualified actuaries, certified public accountants or other similar individuals who are independently practicing their professions, even though these persons may from time to time be similarly employed or retained by persons subject to examination under this chapter.
(g) Cost of Examinations. Any licensee or applicant examined under this chapter shall pay the proper charges incurred in such examination, including the expenses of the commissioner or anyone employed or contracted by the commissioner to assist in the examination.
(h) Immunity from Liability. (1) No cause of action shall arise nor shall any liability be imposed against the commissioner, the commissioner's authorized representatives or any examiner appointed by the commissioner for any statements made or conduct performed in good faith while carrying out this chapter. (2) No cause of action shall arise, nor shall any liability be imposed against any person for the act of communicating or delivering information or data to the commissioner or the commissioner's authorized representative or examiner pursuant to an examination made under this chapter, if the act of communication or delivery was performed in good faith and without fraudulent intent or the intent to deceive. This subdivision (h)(2) does not abrogate or modify in any way any common law or statutory privilege or immunity heretofore enjoyed by any person identified in subdivision (h)(1). (3) A person identified in subdivision (h)(1) or (h)(2) shall be entitled to an award of attorney's fees and costs if the person is the prevailing party in a civil cause of action for libel, slander or any other relevant tort arising out of activities in carrying out this chapter and the party bringing the action was not substantially justified in doing so. For purposes of this subdivision (h)(3), a proceeding is "substantially justified" if it had a reasonable basis in law or fact at the time that it was initiated.
(1) No cause of action shall arise nor shall any liability be imposed against the commissioner, the commissioner's authorized representatives or any examiner appointed by the commissioner for any statements made or conduct performed in good faith while carrying out this chapter.
(2) No cause of action shall arise, nor shall any liability be imposed against any person for the act of communicating or delivering information or data to the commissioner or the commissioner's authorized representative or examiner pursuant to an examination made under this chapter, if the act of communication or delivery was performed in good faith and without fraudulent intent or the intent to deceive. This subdivision (h)(2) does not abrogate or modify in any way any common law or statutory privilege or immunity heretofore enjoyed by any person identified in subdivision (h)(1).
(3) A person identified in subdivision (h)(1) or (h)(2) shall be entitled to an award of attorney's fees and costs if the person is the prevailing party in a civil cause of action for libel, slander or any other relevant tort arising out of activities in carrying out this chapter and the party bringing the action was not substantially justified in doing so. For purposes of this subdivision (h)(3), a proceeding is "substantially justified" if it had a reasonable basis in law or fact at the time that it was initiated.
(i) Investigative Authority of the Commissioner. The commissioner may investigate suspected violations of this chapter or fraudulent viatical settlement acts and all persons engaged in the business of viatical settlements.
Acts 2009, ch. 604, § 8.
Tenn. Code Ann. § 56-1-202 — TN Code / Title 56 / Chapter 1 / Section 56-1-202
Commissioner head of department
Status: in_force

The commissioner shall be and act as the head of the department. Acts 1923, ch. 7, § 51; Shan. Supp., § 373a113; Code 1932, § 330; impl. am. Acts 1971, ch. 137, § 2; T.C.A. (orig. ed.), § 56-104.
The commissioner shall be and act as the head of the department.
Acts 1923, ch. 7, § 51; Shan. Supp., § 373a113; Code 1932, § 330; impl. am. Acts 1971, ch. 137, § 2; T.C.A. (orig. ed.), § 56-104.
Tenn. Code Ann. § 56-6-104 — TN Code / Title 56 / Chapter 6 / Section 56-6-104
Exceptions to licensing
Status: in_force

(a) Nothing in this part shall be construed to require an insurer to obtain an insurance producer license. In this section, the term "insurer" does not include an insurer's officers, directors, employees, subsidiaries or affiliates. (b) A license as an insurance producer shall not be required of the following: (1) An officer, director or employee of an insurer or of an insurance producer; provided, that the officer, director or employee does not receive any commission on policies written or sold to insure risks residing, located or to be performed in this state and: (A) The officer, director or employee's activities are executive, administrative, managerial, clerical or a combination of these, and are only indirectly related to the sale, solicitation or negotiation of insurance; (B) The officer, director or employee's function relates to underwriting, loss control, inspection or the processing, adjusting, investigating or settling of a claim on a contract of insurance; or (C) The officer, director or employee is acting in the capacity of a special agent or agency supervisor assisting insurance producers where the person's activities are limited to providing technical advice and assistance to licensed insurance producers and do not include the sale, solicitation or negotiation of insurance; (2) A person who secures and furnishes information for the purpose of group life insurance, group property and casualty insurance, group annuities, group or blanket accident and health insurance; or for the purpose of enrolling individuals under plans, issuing certificates under plans or otherwise assisting in administering plans, or performs administrative services related to mass marketed property and casualty insurance, where no commission is paid to the person for the service; (3) An employer or association or its officers, directors, employees, or the trustees of an employee trust plan, to the extent that the employers, officers, employees, director or trustees are engaged in the administration or operation of a program of employee benefits for the employer's or association's own employees or the employees of its subsidiaries or affiliates, which program involves the use of insurance issued by an insurer, as long as the employers, associations, officers, directors, employees or trustees are not in any manner compensated, directly or indirectly, by the company issuing the contracts; (4) Employees of insurers or organizations employed by insurers who are engaging in the inspection, rating or classification of risks, or in the supervision of the training of insurance producers and who are not individually engaged in the sale, solicitation or negotiation of insurance; (5) A person whose activities in this state are limited to advertising without the intent to solicit insurance in this state through communications in printed publications or other forms of electronic mass media whose distribution is not limited to residents of the state; provided, that the person does not sell, solicit or negotiate insurance that would insure risks residing, located or to be performed in this state; (6) A person who is not a resident of this state who sells, solicits or negotiates a contract of insurance for commercial property and casualty risks to an insured with risks located in more than one state insured under that contract; provided, that the person is otherwise licensed as an insurance producer to sell, solicit or negotiate that insurance in the state where the insured maintains its principal place of business and the contract of insurance insures risks located in that state; (7) A salaried full-time employee who counsels or advises an employer relative to the insurance interests of the employer or of the subsidiaries or business affiliates of the employer; provided, that the employee does not sell or solicit insurance or receive a commission; (8) Any regular salaried officer, employee or member of a fraternal benefit society that provides benefits in case of death or disability, resulting solely from accident, and that does not obligate the officer, employee or member to pay natural death or sick benefits, the officers, employees or members procuring other members and receiving no compensation for the procurement other than awards or merchandise nominal in value; (9) An officer, director, or employee of a vehicle rental company engaged in the sale, solicitation, or negotiation of optional insurance sold in connection with and incidental to a motor vehicle rental agreement for a period not to exceed ninety (90) days; (A) The insurance that may be offered pursuant to this subdivision (b)(9) is limited to: (i) Personal accident coverage that provides protection for renters and other rental vehicle occupants for accidental death or dismemberment, and for medical expenses resulting from an accident that occurs during the rental period; (ii) Liability coverage that provides protection to renters and to other authorized drivers of the rental motor vehicle for liability arising from the operation of the motor vehicle during the rental period. The liability protection, when purchased by a renter, shall be deemed to be primary over any other coverages that may be available to the renter or other authorized driver of the rental vehicle to the extent of the protection provided; (iii) Personal effects coverage that provides protection to renters and other motor vehicle occupants for loss of, or damage to, personal effects in the rental motor vehicle during the rental period; and (iv) Roadside assistance coverage; (B) As used in subdivision (b)(9)(A), "motor vehicle" or "rental vehicle" means a private passenger motor vehicle, including passenger vans, mini vans, and sport utility vehicles, and a cargo motor vehicle, including cargo vans, pickup trucks, and trucks with a gross vehicle weight of less than twenty-six thousand pounds (26,000 lbs.); (C) Each person engaged in the sale of optional insurance products pursuant to this subdivision (b)(9) shall give each renter who purchases the coverage brochures or other written materials that: (i) Summarize, clearly and correctly, the material terms and conditions of coverage offered to renters; (ii) Identify the insurer; (iii) Describe the process for filing a claim in the event the renter elects to purchase coverage; (iv) State that the purchase of the coverage is not required in order to rent a vehicle; (v) Disclose that the coverage offered by the rental agreement may provide a duplication of coverage already provided by a renter's personal automobile policy or by another source of coverage; and (vi) Itemize the cost for the coverage separately; (D) The commissioner may seek the sanctions provided in former § 56-6-112(e) [repealed] against a vehicle rental company upon a finding that an officer, director, or employee of a vehicle rental company has violated § 56-6-112(a)(2), (4), (5), (7), (8), or (10) in connection with the sale, solicitation, or negotiation of optional insurance sold in connection with and incidental to a motor vehicle rental agreement for a period not to exceed ninety (90) days; (10) An officer, director, employee, or authorized representative of a business entity engaged in the sale, solicitation, or negotiation of portable electronics insurance licensed pursuant to and acting in compliance with part 11 of this chapter; (11) An officer, director, employee or authorized representative of a business entity engaged in the sale, solicitation or negotiation of self-service storage insurance licensed pursuant to and acting in compliance with part 12 of this chapter; or (12) (A) A medicare product marketing representative, unless licensing as an insurance producer is required under applicable CMS regulations; (B) As used in this subdivision (b)(12): (i) "CMS" means the federal centers for medicare and medicaid services; (ii) "Medicare product" means the forms of medicare coverage under which medicare beneficiaries may obtain coverage from a risk-bearing entity, including a medicare advantage plan; (iii) "Medicare product insurer" means an insurance company: (a) Authorized in this state to write accident and health insurance; and (b) Authorized by CMS to offer one (1) or more medicare products in this state; (iv) "Medicare product marketing": (a) Means marketing as defined in medicare product marketing regulations and guidelines published by CMS; and (b) Does not include the authority to bind coverage, negotiate premiums or other terms of coverage, or receive commissions in connection with the sale of medicare advantage plans; (v) "Medicare product marketing representative" means an individual who: (a) Is authorized by a medicare product insurer to engage in medicare product marketing on the insurer's behalf; (b) Works under the supervision of a supervising agent employed by the medicare product insurer; and (c) Complies with applicable CMS training and educational requirements for medicare products; and (vi) "Supervising agent" means an individual holding an insurance producer license for accident and health insurance who has been designated by a medicare product insurer to supervise the marketing activities of one (1) or more medicare product marketing representatives. Amended by 2022 Tenn. Acts, ch. 806, s 1, eff. 4/8/2022. Amended by 2013 Tenn. Acts, ch. 293, s 10, eff. 7/1/2013. Acts 2002, ch. 798, § 5; 2005, ch. 58, § 2; 2011 , ch. 312, § 10.
(a) Nothing in this part shall be construed to require an insurer to obtain an insurance producer license. In this section, the term "insurer" does not include an insurer's officers, directors, employees, subsidiaries or affiliates.
(b) A license as an insurance producer shall not be required of the following: (1) An officer, director or employee of an insurer or of an insurance producer; provided, that the officer, director or employee does not receive any commission on policies written or sold to insure risks residing, located or to be performed in this state and: (A) The officer, director or employee's activities are executive, administrative, managerial, clerical or a combination of these, and are only indirectly related to the sale, solicitation or negotiation of insurance; (B) The officer, director or employee's function relates to underwriting, loss control, inspection or the processing, adjusting, investigating or settling of a claim on a contract of insurance; or (C) The officer, director or employee is acting in the capacity of a special agent or agency supervisor assisting insurance producers where the person's activities are limited to providing technical advice and assistance to licensed insurance producers and do not include the sale, solicitation or negotiation of insurance; (2) A person who secures and furnishes information for the purpose of group life insurance, group property and casualty insurance, group annuities, group or blanket accident and health insurance; or for the purpose of enrolling individuals under plans, issuing certificates under plans or otherwise assisting in administering plans, or performs administrative services related to mass marketed property and casualty insurance, where no commission is paid to the person for the service; (3) An employer or association or its officers, directors, employees, or the trustees of an employee trust plan, to the extent that the employers, officers, employees, director or trustees are engaged in the administration or operation of a program of employee benefits for the employer's or association's own employees or the employees of its subsidiaries or affiliates, which program involves the use of insurance issued by an insurer, as long as the employers, associations, officers, directors, employees or trustees are not in any manner compensated, directly or indirectly, by the company issuing the contracts; (4) Employees of insurers or organizations employed by insurers who are engaging in the inspection, rating or classification of risks, or in the supervision of the training of insurance producers and who are not individually engaged in the sale, solicitation or negotiation of insurance; (5) A person whose activities in this state are limited to advertising without the intent to solicit insurance in this state through communications in printed publications or other forms of electronic mass media whose distribution is not limited to residents of the state; provided, that the person does not sell, solicit or negotiate insurance that would insure risks residing, located or to be performed in this state; (6) A person who is not a resident of this state who sells, solicits or negotiates a contract of insurance for commercial property and casualty risks to an insured with risks located in more than one state insured under that contract; provided, that the person is otherwise licensed as an insurance producer to sell, solicit or negotiate that insurance in the state where the insured maintains its principal place of business and the contract of insurance insures risks located in that state; (7) A salaried full-time employee who counsels or advises an employer relative to the insurance interests of the employer or of the subsidiaries or business affiliates of the employer; provided, that the employee does not sell or solicit insurance or receive a commission; (8) Any regular salaried officer, employee or member of a fraternal benefit society that provides benefits in case of death or disability, resulting solely from accident, and that does not obligate the officer, employee or member to pay natural death or sick benefits, the officers, employees or members procuring other members and receiving no compensation for the procurement other than awards or merchandise nominal in value; (9) An officer, director, or employee of a vehicle rental company engaged in the sale, solicitation, or negotiation of optional insurance sold in connection with and incidental to a motor vehicle rental agreement for a period not to exceed ninety (90) days; (A) The insurance that may be offered pursuant to this subdivision (b)(9) is limited to: (i) Personal accident coverage that provides protection for renters and other rental vehicle occupants for accidental death or dismemberment, and for medical expenses resulting from an accident that occurs during the rental period; (ii) Liability coverage that provides protection to renters and to other authorized drivers of the rental motor vehicle for liability arising from the operation of the motor vehicle during the rental period. The liability protection, when purchased by a renter, shall be deemed to be primary over any other coverages that may be available to the renter or other authorized driver of the rental vehicle to the extent of the protection provided; (iii) Personal effects coverage that provides protection to renters and other motor vehicle occupants for loss of, or damage to, personal effects in the rental motor vehicle during the rental period; and (iv) Roadside assistance coverage; (B) As used in subdivision (b)(9)(A), "motor vehicle" or "rental vehicle" means a private passenger motor vehicle, including passenger vans, mini vans, and sport utility vehicles, and a cargo motor vehicle, including cargo vans, pickup trucks, and trucks with a gross vehicle weight of less than twenty-six thousand pounds (26,000 lbs.); (C) Each person engaged in the sale of optional insurance products pursuant to this subdivision (b)(9) shall give each renter who purchases the coverage brochures or other written materials that: (i) Summarize, clearly and correctly, the material terms and conditions of coverage offered to renters; (ii) Identify the insurer; (iii) Describe the process for filing a claim in the event the renter elects to purchase coverage; (iv) State that the purchase of the coverage is not required in order to rent a vehicle; (v) Disclose that the coverage offered by the rental agreement may provide a duplication of coverage already provided by a renter's personal automobile policy or by another source of coverage; and (vi) Itemize the cost for the coverage separately; (D) The commissioner may seek the sanctions provided in former § 56-6-112(e) [repealed] against a vehicle rental company upon a finding that an officer, director, or employee of a vehicle rental company has violated § 56-6-112(a)(2), (4), (5), (7), (8), or (10) in connection with the sale, solicitation, or negotiation of optional insurance sold in connection with and incidental to a motor vehicle rental agreement for a period not to exceed ninety (90) days; (10) An officer, director, employee, or authorized representative of a business entity engaged in the sale, solicitation, or negotiation of portable electronics insurance licensed pursuant to and acting in compliance with part 11 of this chapter; (11) An officer, director, employee or authorized representative of a business entity engaged in the sale, solicitation or negotiation of self-service storage insurance licensed pursuant to and acting in compliance with part 12 of this chapter; or (12) (A) A medicare product marketing representative, unless licensing as an insurance producer is required under applicable CMS regulations; (B) As used in this subdivision (b)(12): (i) "CMS" means the federal centers for medicare and medicaid services; (ii) "Medicare product" means the forms of medicare coverage under which medicare beneficiaries may obtain coverage from a risk-bearing entity, including a medicare advantage plan; (iii) "Medicare product insurer" means an insurance company: (a) Authorized in this state to write accident and health insurance; and (b) Authorized by CMS to offer one (1) or more medicare products in this state; (iv) "Medicare product marketing": (a) Means marketing as defined in medicare product marketing regulations and guidelines published by CMS; and (b) Does not include the authority to bind coverage, negotiate premiums or other terms of coverage, or receive commissions in connection with the sale of medicare advantage plans; (v) "Medicare product marketing representative" means an individual who: (a) Is authorized by a medicare product insurer to engage in medicare product marketing on the insurer's behalf; (b) Works under the supervision of a supervising agent employed by the medicare product insurer; and (c) Complies with applicable CMS training and educational requirements for medicare products; and (vi) "Supervising agent" means an individual holding an insurance producer license for accident and health insurance who has been designated by a medicare product insurer to supervise the marketing activities of one (1) or more medicare product marketing representatives.
(1) An officer, director or employee of an insurer or of an insurance producer; provided, that the officer, director or employee does not receive any commission on policies written or sold to insure risks residing, located or to be performed in this state and: (A) The officer, director or employee's activities are executive, administrative, managerial, clerical or a combination of these, and are only indirectly related to the sale, solicitation or negotiation of insurance; (B) The officer, director or employee's function relates to underwriting, loss control, inspection or the processing, adjusting, investigating or settling of a claim on a contract of insurance; or (C) The officer, director or employee is acting in the capacity of a special agent or agency supervisor assisting insurance producers where the person's activities are limited to providing technical advice and assistance to licensed insurance producers and do not include the sale, solicitation or negotiation of insurance;
(A) The officer, director or employee's activities are executive, administrative, managerial, clerical or a combination of these, and are only indirectly related to the sale, solicitation or negotiation of insurance;
(B) The officer, director or employee's function relates to underwriting, loss control, inspection or the processing, adjusting, investigating or settling of a claim on a contract of insurance; or
(C) The officer, director or employee is acting in the capacity of a special agent or agency supervisor assisting insurance producers where the person's activities are limited to providing technical advice and assistance to licensed insurance producers and do not include the sale, solicitation or negotiation of insurance;
(2) A person who secures and furnishes information for the purpose of group life insurance, group property and casualty insurance, group annuities, group or blanket accident and health insurance; or for the purpose of enrolling individuals under plans, issuing certificates under plans or otherwise assisting in administering plans, or performs administrative services related to mass marketed property and casualty insurance, where no commission is paid to the person for the service;
(3) An employer or association or its officers, directors, employees, or the trustees of an employee trust plan, to the extent that the employers, officers, employees, director or trustees are engaged in the administration or operation of a program of employee benefits for the employer's or association's own employees or the employees of its subsidiaries or affiliates, which program involves the use of insurance issued by an insurer, as long as the employers, associations, officers, directors, employees or trustees are not in any manner compensated, directly or indirectly, by the company issuing the contracts;
(4) Employees of insurers or organizations employed by insurers who are engaging in the inspection, rating or classification of risks, or in the supervision of the training of insurance producers and who are not individually engaged in the sale, solicitation or negotiation of insurance;
(5) A person whose activities in this state are limited to advertising without the intent to solicit insurance in this state through communications in printed publications or other forms of electronic mass media whose distribution is not limited to residents of the state; provided, that the person does not sell, solicit or negotiate insurance that would insure risks residing, located or to be performed in this state;
(6) A person who is not a resident of this state who sells, solicits or negotiates a contract of insurance for commercial property and casualty risks to an insured with risks located in more than one state insured under that contract; provided, that the person is otherwise licensed as an insurance producer to sell, solicit or negotiate that insurance in the state where the insured maintains its principal place of business and the contract of insurance insures risks located in that state;
(7) A salaried full-time employee who counsels or advises an employer relative to the insurance interests of the employer or of the subsidiaries or business affiliates of the employer; provided, that the employee does not sell or solicit insurance or receive a commission;
(8) Any regular salaried officer, employee or member of a fraternal benefit society that provides benefits in case of death or disability, resulting solely from accident, and that does not obligate the officer, employee or member to pay natural death or sick benefits, the officers, employees or members procuring other members and receiving no compensation for the procurement other than awards or merchandise nominal in value;
(9) An officer, director, or employee of a vehicle rental company engaged in the sale, solicitation, or negotiation of optional insurance sold in connection with and incidental to a motor vehicle rental agreement for a period not to exceed ninety (90) days; (A) The insurance that may be offered pursuant to this subdivision (b)(9) is limited to: (i) Personal accident coverage that provides protection for renters and other rental vehicle occupants for accidental death or dismemberment, and for medical expenses resulting from an accident that occurs during the rental period; (ii) Liability coverage that provides protection to renters and to other authorized drivers of the rental motor vehicle for liability arising from the operation of the motor vehicle during the rental period. The liability protection, when purchased by a renter, shall be deemed to be primary over any other coverages that may be available to the renter or other authorized driver of the rental vehicle to the extent of the protection provided; (iii) Personal effects coverage that provides protection to renters and other motor vehicle occupants for loss of, or damage to, personal effects in the rental motor vehicle during the rental period; and (iv) Roadside assistance coverage; (B) As used in subdivision (b)(9)(A), "motor vehicle" or "rental vehicle" means a private passenger motor vehicle, including passenger vans, mini vans, and sport utility vehicles, and a cargo motor vehicle, including cargo vans, pickup trucks, and trucks with a gross vehicle weight of less than twenty-six thousand pounds (26,000 lbs.); (C) Each person engaged in the sale of optional insurance products pursuant to this subdivision (b)(9) shall give each renter who purchases the coverage brochures or other written materials that: (i) Summarize, clearly and correctly, the material terms and conditions of coverage offered to renters; (ii) Identify the insurer; (iii) Describe the process for filing a claim in the event the renter elects to purchase coverage; (iv) State that the purchase of the coverage is not required in order to rent a vehicle; (v) Disclose that the coverage offered by the rental agreement may provide a duplication of coverage already provided by a renter's personal automobile policy or by another source of coverage; and (vi) Itemize the cost for the coverage separately; (D) The commissioner may seek the sanctions provided in former § 56-6-112(e) [repealed] against a vehicle rental company upon a finding that an officer, director, or employee of a vehicle rental company has violated § 56-6-112(a)(2), (4), (5), (7), (8), or (10) in connection with the sale, solicitation, or negotiation of optional insurance sold in connection with and incidental to a motor vehicle rental agreement for a period not to exceed ninety (90) days;
(A) The insurance that may be offered pursuant to this subdivision (b)(9) is limited to: (i) Personal accident coverage that provides protection for renters and other rental vehicle occupants for accidental death or dismemberment, and for medical expenses resulting from an accident that occurs during the rental period; (ii) Liability coverage that provides protection to renters and to other authorized drivers of the rental motor vehicle for liability arising from the operation of the motor vehicle during the rental period. The liability protection, when purchased by a renter, shall be deemed to be primary over any other coverages that may be available to the renter or other authorized driver of the rental vehicle to the extent of the protection provided; (iii) Personal effects coverage that provides protection to renters and other motor vehicle occupants for loss of, or damage to, personal effects in the rental motor vehicle during the rental period; and (iv) Roadside assistance coverage;
(i) Personal accident coverage that provides protection for renters and other rental vehicle occupants for accidental death or dismemberment, and for medical expenses resulting from an accident that occurs during the rental period;
(ii) Liability coverage that provides protection to renters and to other authorized drivers of the rental motor vehicle for liability arising from the operation of the motor vehicle during the rental period. The liability protection, when purchased by a renter, shall be deemed to be primary over any other coverages that may be available to the renter or other authorized driver of the rental vehicle to the extent of the protection provided;
(iii) Personal effects coverage that provides protection to renters and other motor vehicle occupants for loss of, or damage to, personal effects in the rental motor vehicle during the rental period; and
(iv) Roadside assistance coverage;
(B) As used in subdivision (b)(9)(A), "motor vehicle" or "rental vehicle" means a private passenger motor vehicle, including passenger vans, mini vans, and sport utility vehicles, and a cargo motor vehicle, including cargo vans, pickup trucks, and trucks with a gross vehicle weight of less than twenty-six thousand pounds (26,000 lbs.);
(C) Each person engaged in the sale of optional insurance products pursuant to this subdivision (b)(9) shall give each renter who purchases the coverage brochures or other written materials that: (i) Summarize, clearly and correctly, the material terms and conditions of coverage offered to renters; (ii) Identify the insurer; (iii) Describe the process for filing a claim in the event the renter elects to purchase coverage; (iv) State that the purchase of the coverage is not required in order to rent a vehicle; (v) Disclose that the coverage offered by the rental agreement may provide a duplication of coverage already provided by a renter's personal automobile policy or by another source of coverage; and (vi) Itemize the cost for the coverage separately;
(i) Summarize, clearly and correctly, the material terms and conditions of coverage offered to renters;
(ii) Identify the insurer;
(iii) Describe the process for filing a claim in the event the renter elects to purchase coverage;
(iv) State that the purchase of the coverage is not required in order to rent a vehicle;
(v) Disclose that the coverage offered by the rental agreement may provide a duplication of coverage already provided by a renter's personal automobile policy or by another source of coverage; and
(vi) Itemize the cost for the coverage separately;
(D) The commissioner may seek the sanctions provided in former § 56-6-112(e) [repealed] against a vehicle rental company upon a finding that an officer, director, or employee of a vehicle rental company has violated § 56-6-112(a)(2), (4), (5), (7), (8), or (10) in connection with the sale, solicitation, or negotiation of optional insurance sold in connection with and incidental to a motor vehicle rental agreement for a period not to exceed ninety (90) days;
(10) An officer, director, employee, or authorized representative of a business entity engaged in the sale, solicitation, or negotiation of portable electronics insurance licensed pursuant to and acting in compliance with part 11 of this chapter;
(11) An officer, director, employee or authorized representative of a business entity engaged in the sale, solicitation or negotiation of self-service storage insurance licensed pursuant to and acting in compliance with part 12 of this chapter; or
(12) (A) A medicare product marketing representative, unless licensing as an insurance producer is required under applicable CMS regulations; (B) As used in this subdivision (b)(12): (i) "CMS" means the federal centers for medicare and medicaid services; (ii) "Medicare product" means the forms of medicare coverage under which medicare beneficiaries may obtain coverage from a risk-bearing entity, including a medicare advantage plan; (iii) "Medicare product insurer" means an insurance company: (a) Authorized in this state to write accident and health insurance; and (b) Authorized by CMS to offer one (1) or more medicare products in this state; (iv) "Medicare product marketing": (a) Means marketing as defined in medicare product marketing regulations and guidelines published by CMS; and (b) Does not include the authority to bind coverage, negotiate premiums or other terms of coverage, or receive commissions in connection with the sale of medicare advantage plans; (v) "Medicare product marketing representative" means an individual who: (a) Is authorized by a medicare product insurer to engage in medicare product marketing on the insurer's behalf; (b) Works under the supervision of a supervising agent employed by the medicare product insurer; and (c) Complies with applicable CMS training and educational requirements for medicare products; and (vi) "Supervising agent" means an individual holding an insurance producer license for accident and health insurance who has been designated by a medicare product insurer to supervise the marketing activities of one (1) or more medicare product marketing representatives.
(A) A medicare product marketing representative, unless licensing as an insurance producer is required under applicable CMS regulations;
(B) As used in this subdivision (b)(12): (i) "CMS" means the federal centers for medicare and medicaid services; (ii) "Medicare product" means the forms of medicare coverage under which medicare beneficiaries may obtain coverage from a risk-bearing entity, including a medicare advantage plan; (iii) "Medicare product insurer" means an insurance company: (a) Authorized in this state to write accident and health insurance; and (b) Authorized by CMS to offer one (1) or more medicare products in this state; (iv) "Medicare product marketing": (a) Means marketing as defined in medicare product marketing regulations and guidelines published by CMS; and (b) Does not include the authority to bind coverage, negotiate premiums or other terms of coverage, or receive commissions in connection with the sale of medicare advantage plans; (v) "Medicare product marketing representative" means an individual who: (a) Is authorized by a medicare product insurer to engage in medicare product marketing on the insurer's behalf; (b) Works under the supervision of a supervising agent employed by the medicare product insurer; and (c) Complies with applicable CMS training and educational requirements for medicare products; and (vi) "Supervising agent" means an individual holding an insurance producer license for accident and health insurance who has been designated by a medicare product insurer to supervise the marketing activities of one (1) or more medicare product marketing representatives.
(i) "CMS" means the federal centers for medicare and medicaid services;
(ii) "Medicare product" means the forms of medicare coverage under which medicare beneficiaries may obtain coverage from a risk-bearing entity, including a medicare advantage plan;
(iii) "Medicare product insurer" means an insurance company: (a) Authorized in this state to write accident and health insurance; and (b) Authorized by CMS to offer one (1) or more medicare products in this state;
(a) Authorized in this state to write accident and health insurance; and
(b) Authorized by CMS to offer one (1) or more medicare products in this state;
(iv) "Medicare product marketing": (a) Means marketing as defined in medicare product marketing regulations and guidelines published by CMS; and (b) Does not include the authority to bind coverage, negotiate premiums or other terms of coverage, or receive commissions in connection with the sale of medicare advantage plans;
(a) Means marketing as defined in medicare product marketing regulations and guidelines published by CMS; and
(b) Does not include the authority to bind coverage, negotiate premiums or other terms of coverage, or receive commissions in connection with the sale of medicare advantage plans;
(v) "Medicare product marketing representative" means an individual who: (a) Is authorized by a medicare product insurer to engage in medicare product marketing on the insurer's behalf; (b) Works under the supervision of a supervising agent employed by the medicare product insurer; and (c) Complies with applicable CMS training and educational requirements for medicare products; and
(a) Is authorized by a medicare product insurer to engage in medicare product marketing on the insurer's behalf;
(b) Works under the supervision of a supervising agent employed by the medicare product insurer; and
(c) Complies with applicable CMS training and educational requirements for medicare products; and
(vi) "Supervising agent" means an individual holding an insurance producer license for accident and health insurance who has been designated by a medicare product insurer to supervise the marketing activities of one (1) or more medicare product marketing representatives.
Amended by 2022 Tenn. Acts, ch. 806, s 1, eff. 4/8/2022.
Amended by 2013 Tenn. Acts, ch. 293, s 10, eff. 7/1/2013.
Acts 2002, ch. 798, § 5; 2005, ch. 58, § 2; 2011 , ch. 312, § 10.
Tenn. Code Ann. § 56-26-302 — TN Code / Title 56 / Chapter 26 / Section 56-26-302
Furnishing of charge data required
Status: in_force

(a) Insurers and administrators shall provide charge data by hospital and by diagnostic category when requested by major purchasers. (b) Charge data shall be provided under rules and regulations promulgated under § 56-26-305 . Acts 1980, ch. 876, § 2.
(a) Insurers and administrators shall provide charge data by hospital and by diagnostic category when requested by major purchasers.
(b) Charge data shall be provided under rules and regulations promulgated under § 56-26-305 .
Acts 1980, ch. 876, § 2.
Tenn. Code Ann. § 56-5-104 — TN Code / Title 56 / Chapter 5 / Section 56-5-104
Criteria for compliance
Status: in_force

In determining whether rates comply with the standards set forth in § 56-5-103 , the following criteria shall apply: (1) Basic Factors in Rates. Due consideration shall be given to: (A) Past and prospective loss and expense experience within and outside this state; (B) Catastrophe hazards; (C) Any residual market loss redistributions and other similar obligations; (D) A reasonable provision for profit and contingencies; (E) Trends within and outside this state; (F) Loadings for leveling premium rates over a reasonable period of time or for dividends or savings to be allowed or returned by insurers to their policyholders, members or subscribers; and (G) All other relevant factors, including the judgment of the filer; (2) Classification. Risks may be classified in any reasonable way for the establishment of rates except that no risks may be grouped by classifications based in whole or in part on race, color, creed, or national origin of the risk. Rates may be modified for individual risks in accordance with rating plans or schedules that provide for recognition of probable variations in hazards, expenses or both; and (3) Expenses. The systems of expense provisions included in rates for use by an insurer or group of insurers may differ from those of other insurers or group of insurers to reflect the operating methods of the insurer, or group with respect to any kind of insurance, or with respect to any subdivision or combination of kinds of insurance. Acts 1983, ch. 66, § 5.
In determining whether rates comply with the standards set forth in § 56-5-103 , the following criteria shall apply:
(1) Basic Factors in Rates. Due consideration shall be given to: (A) Past and prospective loss and expense experience within and outside this state; (B) Catastrophe hazards; (C) Any residual market loss redistributions and other similar obligations; (D) A reasonable provision for profit and contingencies; (E) Trends within and outside this state; (F) Loadings for leveling premium rates over a reasonable period of time or for dividends or savings to be allowed or returned by insurers to their policyholders, members or subscribers; and (G) All other relevant factors, including the judgment of the filer;
(A) Past and prospective loss and expense experience within and outside this state;
(B) Catastrophe hazards;
(C) Any residual market loss redistributions and other similar obligations;
(D) A reasonable provision for profit and contingencies;
(E) Trends within and outside this state;
(F) Loadings for leveling premium rates over a reasonable period of time or for dividends or savings to be allowed or returned by insurers to their policyholders, members or subscribers; and
(G) All other relevant factors, including the judgment of the filer;
(2) Classification. Risks may be classified in any reasonable way for the establishment of rates except that no risks may be grouped by classifications based in whole or in part on race, color, creed, or national origin of the risk. Rates may be modified for individual risks in accordance with rating plans or schedules that provide for recognition of probable variations in hazards, expenses or both; and
(3) Expenses. The systems of expense provisions included in rates for use by an insurer or group of insurers may differ from those of other insurers or group of insurers to reflect the operating methods of the insurer, or group with respect to any kind of insurance, or with respect to any subdivision or combination of kinds of insurance.
Acts 1983, ch. 66, § 5.
Tenn. Code Ann. § 56-9-316 — TN Code / Title 56 / Chapter 9 / Section 56-9-316
Transfers of property after filing of petition for rehabilitation or liquidation - Effect
Status: in_force

(a) (1) After a petition for rehabilitation or liquidation has been filed, a transfer of any of the real property of the insurer made to a person acting in good faith shall be valid against the receiver if made for a present fair equivalent value, or, if not made for a present fair equivalent value, then to the extent of the present consideration actually paid therefor, for which amount the transferee shall have a lien on the property so transferred. (2) The commencement of a proceeding in rehabilitation or liquidation shall be constructive notice upon the recording of a copy of the petition for or order of rehabilitation or liquidation with the recorder of deeds in the county where any real property in question is located. (3) The exercise by a court of the United States or any state or jurisdiction to authorize or effect a judicial sale of real property of the insurer within any county in any state shall not be impaired by the pendency of such a proceeding unless the copy is recorded in the county prior to the consummation of the judicial sale. (b) (1) After a petition for rehabilitation or liquidation has been filed, and before either the receiver takes possession of the property of the insurer or an order of rehabilitation or liquidation is granted: (A) A transfer of any of the property of the insurer, other than real property, made to a person acting in good faith is valid against the receiver if made for a present fair equivalent value, or, if not made for a present fair equivalent value, then to the extent of the present consideration actually paid therefor, for which amount the transferee shall have a lien on the property so transferred; (B) A person indebted to the insurer or holding property of the insurer may, if acting in good faith, pay the indebtedness or deliver the property, or any part of the property, to the insurer or upon the insurer's order, with the same effect as if the petition were not pending; (C) A person having actual knowledge of the pending rehabilitation or liquidation shall be deemed not to act in good faith; and (D) A person asserting the validity of a transfer under this section has the burden of proof. (2) Except as elsewhere provided in this section, no transfer by or on behalf of the insurer after the date of the petition for liquidation by any person other than the liquidator shall be valid against the liquidator. (c) Every person receiving any property from the insurer or any benefit that is a fraudulent transfer under subsection (a) is personally liable therefor and is bound to account to the liquidator. (d) Nothing in this chapter impairs the negotiability of currency or negotiable instruments. Acts 1991, ch. 142, § 4.
(a) (1) After a petition for rehabilitation or liquidation has been filed, a transfer of any of the real property of the insurer made to a person acting in good faith shall be valid against the receiver if made for a present fair equivalent value, or, if not made for a present fair equivalent value, then to the extent of the present consideration actually paid therefor, for which amount the transferee shall have a lien on the property so transferred. (2) The commencement of a proceeding in rehabilitation or liquidation shall be constructive notice upon the recording of a copy of the petition for or order of rehabilitation or liquidation with the recorder of deeds in the county where any real property in question is located. (3) The exercise by a court of the United States or any state or jurisdiction to authorize or effect a judicial sale of real property of the insurer within any county in any state shall not be impaired by the pendency of such a proceeding unless the copy is recorded in the county prior to the consummation of the judicial sale.
(1) After a petition for rehabilitation or liquidation has been filed, a transfer of any of the real property of the insurer made to a person acting in good faith shall be valid against the receiver if made for a present fair equivalent value, or, if not made for a present fair equivalent value, then to the extent of the present consideration actually paid therefor, for which amount the transferee shall have a lien on the property so transferred.
(2) The commencement of a proceeding in rehabilitation or liquidation shall be constructive notice upon the recording of a copy of the petition for or order of rehabilitation or liquidation with the recorder of deeds in the county where any real property in question is located.
(3) The exercise by a court of the United States or any state or jurisdiction to authorize or effect a judicial sale of real property of the insurer within any county in any state shall not be impaired by the pendency of such a proceeding unless the copy is recorded in the county prior to the consummation of the judicial sale.
(b) (1) After a petition for rehabilitation or liquidation has been filed, and before either the receiver takes possession of the property of the insurer or an order of rehabilitation or liquidation is granted: (A) A transfer of any of the property of the insurer, other than real property, made to a person acting in good faith is valid against the receiver if made for a present fair equivalent value, or, if not made for a present fair equivalent value, then to the extent of the present consideration actually paid therefor, for which amount the transferee shall have a lien on the property so transferred; (B) A person indebted to the insurer or holding property of the insurer may, if acting in good faith, pay the indebtedness or deliver the property, or any part of the property, to the insurer or upon the insurer's order, with the same effect as if the petition were not pending; (C) A person having actual knowledge of the pending rehabilitation or liquidation shall be deemed not to act in good faith; and (D) A person asserting the validity of a transfer under this section has the burden of proof. (2) Except as elsewhere provided in this section, no transfer by or on behalf of the insurer after the date of the petition for liquidation by any person other than the liquidator shall be valid against the liquidator.
(1) After a petition for rehabilitation or liquidation has been filed, and before either the receiver takes possession of the property of the insurer or an order of rehabilitation or liquidation is granted: (A) A transfer of any of the property of the insurer, other than real property, made to a person acting in good faith is valid against the receiver if made for a present fair equivalent value, or, if not made for a present fair equivalent value, then to the extent of the present consideration actually paid therefor, for which amount the transferee shall have a lien on the property so transferred; (B) A person indebted to the insurer or holding property of the insurer may, if acting in good faith, pay the indebtedness or deliver the property, or any part of the property, to the insurer or upon the insurer's order, with the same effect as if the petition were not pending; (C) A person having actual knowledge of the pending rehabilitation or liquidation shall be deemed not to act in good faith; and (D) A person asserting the validity of a transfer under this section has the burden of proof.
(A) A transfer of any of the property of the insurer, other than real property, made to a person acting in good faith is valid against the receiver if made for a present fair equivalent value, or, if not made for a present fair equivalent value, then to the extent of the present consideration actually paid therefor, for which amount the transferee shall have a lien on the property so transferred;
(B) A person indebted to the insurer or holding property of the insurer may, if acting in good faith, pay the indebtedness or deliver the property, or any part of the property, to the insurer or upon the insurer's order, with the same effect as if the petition were not pending;
(C) A person having actual knowledge of the pending rehabilitation or liquidation shall be deemed not to act in good faith; and
(D) A person asserting the validity of a transfer under this section has the burden of proof.
(2) Except as elsewhere provided in this section, no transfer by or on behalf of the insurer after the date of the petition for liquidation by any person other than the liquidator shall be valid against the liquidator.
(c) Every person receiving any property from the insurer or any benefit that is a fraudulent transfer under subsection (a) is personally liable therefor and is bound to account to the liquidator.
(d) Nothing in this chapter impairs the negotiability of currency or negotiable instruments.
Acts 1991, ch. 142, § 4.
Tenn. Code Ann. § 56-6-116 — TN Code / Title 56 / Chapter 6 / Section 56-6-116
Fiduciary duty
Status: in_force

Any money that an insurance producer receives for soliciting, negotiating or selling insurance shall be held in a fiduciary capacity, and shall not be misappropriated, converted or improperly withheld. Any violation of this section shall be considered grounds for the denial, suspension, or revocation of the insurance producer's license and shall subject the insurance producer to the sanctions and penalties set forth under § 56-6-112 . Acts 2002, ch. 798, § 17.
Any money that an insurance producer receives for soliciting, negotiating or selling insurance shall be held in a fiduciary capacity, and shall not be misappropriated, converted or improperly withheld. Any violation of this section shall be considered grounds for the denial, suspension, or revocation of the insurance producer's license and shall subject the insurance producer to the sanctions and penalties set forth under § 56-6-112 .
Acts 2002, ch. 798, § 17.
Tenn. Code Ann. § 56-52-110 — TN Code / Title 56 / Chapter 52 / Section 56-52-110
Applicability of title provisions
Status: in_force

(a) Chapter 8 of this title shall apply to charitable gift annuities issued under this chapter. (b) Except as otherwise provided in this chapter, this title, including, but not limited to, chapters 3, 9, and 12, shall not apply to charitable gift annuities issued under this chapter. Acts 2008, ch. 831, § 11.
(a) Chapter 8 of this title shall apply to charitable gift annuities issued under this chapter.
(b) Except as otherwise provided in this chapter, this title, including, but not limited to, chapters 3, 9, and 12, shall not apply to charitable gift annuities issued under this chapter.
Acts 2008, ch. 831, § 11.
Tenn. Code Ann. § 56-7-3117 — TN Code / Title 56 / Chapter 7 / Section 56-7-3117
Disclosure of material changes to contract provisions
Status: in_force

A covered entity or pharmacy benefits manager shall disclose to a pharmacy or pharmacist in its network, at least thirty (30) days before the date the change becomes effective, any material change to a contract provision that affects the terms of reimbursement, the process for verifying benefits and eligibility, the dispute resolution procedure, the procedure for verifying drugs included in the formulary, and the procedure for contract termination. Nothing in this section prohibits a covered entity or pharmacy benefits manager from taking action without notice against a pharmacy or pharmacist in its network for a fraudulent claim or service. Added by 2019 Tenn. Acts, ch. 470,s 4, eff. 7/1/2019.
A covered entity or pharmacy benefits manager shall disclose to a pharmacy or pharmacist in its network, at least thirty (30) days before the date the change becomes effective, any material change to a contract provision that affects the terms of reimbursement, the process for verifying benefits and eligibility, the dispute resolution procedure, the procedure for verifying drugs included in the formulary, and the procedure for contract termination. Nothing in this section prohibits a covered entity or pharmacy benefits manager from taking action without notice against a pharmacy or pharmacist in its network for a fraudulent claim or service.
Added by 2019 Tenn. Acts, ch. 470,s 4, eff. 7/1/2019.